Medical Debt and Bankruptcy Risks Among Older Floridians
Medical debt can affect Floridians of any age, but older adults who live in the state tend to have significantly more medical debt than younger residents. Indeed, according to a report from Alignment Health, seniors in Florida have the highest rate of medical debt in America. That report reveals that about 1 out of every 6 older adults is currently dealing with medical debt, and about 20 percent of seniors say that the high cost of medical care, or existing medical debt, prevents them from seeking the care they need. As people age, they tend to require more medical care and to have costlier medical events occur. Recognizing the high amount of medical debt among seniors, is bankruptcy an option?
Understanding Seniors and Medical Debt
The National Council on Aging (NCOA) explains that medical debt can be a significant barrier to leading a healthy life, especially for individuals who are on fixed incomes. For older adults in Florida who are living on retirement savings and Social Security, medical debt can be debilitating. Even if seniors have negotiated payment plans for medical debt, out-of-pocket costs for Medicare can still be very high, especially for seniors who have chronic medical conditions or disabilities, or who experience a medical emergency or crisis.
As the NCOA underscores, seniors can also experience billing errors that they do not know how to correct, and those billing errors can result in added and unnecessary costs. To be sure, the NCOA explains, “older people are more likely to have greater chronic health needs, which translates into a more complex billing process,” which “often leads to mistakes.” Those kinds of billing errors can then “result in a snowball of medical debt that soon becomes unmanageable.”
Is Chapter 7 Bankruptcy a Good Option?
Many older adults dealing with a substantial amount of medical debt consider bankruptcy, and Chapter 7 bankruptcy in particular because it can allow for a relatively quick discharge of much medical debt. But is bankruptcy the best option?
The answer to that question depends on the older adult’s circumstances. For some seniors on a fixed income that is made up entirely or largely of assets that are exempt from creditors — like Social Security or certain disability benefits — bankruptcy might result in time, effort, and money that is not necessary to spend. However, some seniors should consider bankruptcy options in this situation. A bankruptcy lawyer in West Palm Beach can help you.
Contact Our West Palm Beach Bankruptcy Attorneys Today
Older adults routinely struggle with finances, and those financial difficulties can worsen with unexpected medical debt. If you have any concerns about filing for bankruptcy to have medical debt discharged, an experienced West Palm Beach bankruptcy lawyer at Kelley, Kaplan & Eller is here to assist you. We can answer your questions today, and we can begin working with you on a bankruptcy filing when you are ready. Contact us for more information.
Sources:
ncoa.org/article/how-does-medical-debt-affect-older-adults/
alignmenthealth.com/files/2022-ALHC-Social-Threats-to-Aging-Well
