Debt Free News

Medical expenses causing increased credit card debt

January 6, 2007

In the US, a new research study shows that US consumers are racking up large debt on their credit cards in order to cover medical expenses. According to the new article we read today in our debt free news department, more US citizens are using credit cards to cover their medicals bills than ever before.

IS this is due to the rising amount of US citizens that do not have health coverage? Is it due to the rising amount of medical costs stemming from higher deductibles and less coverage through benefits? Or is it because we are seeing more sick people?

According to the report, our debt free patrons can count all of the above as contributing factors in the country’s rising amount of people living with high credit card debt from hospital and doctor visits.

Many medical insurance companies raised the premium prices on most all of their programs last year. Even hospital workers are seeing a decline in benefits that cause them to go into further credit card debt and other debt to pay of medical attention.

A record rise in the amount of people with absolutely no health care coverage at all is a major contribution to today’s report findings.

As many of our debt news and debt free lifestyle readers are learning – the economy in general causes problems in most all areas of finance. Rate are higher than they have ever been on medical care coverage and credit card rates are high too – put the two together and you have a problem if you need medical care and have to charge it.

About 60% of people working in the US who make under $30,000 a year have no health care coverage. The people who do have coverage have higher deductibles.

This report should not come necessarily as a shock to our debt article readers, but it should make them aware of the issue a bit more in detail.

In the past decade, hospitals have increased the cost of a typical emergency room visit ten fold. Part of the reason for this is the increased cost of malpractice insurance and unpaid hospital bills.

Today, many private hospitals turn away customers with non emergency needs who do not have coverage. This is where credit card debt gets really bad. People who struggle to pay their bills are the ones who typically do not have medical coverage – so they go further into bad debt to pay for medical care.

According to the report, no category has improved in numbers – those with out coverage still do not have it – impressive amounts of people have the highest deductibles they ever have – even through company benefits.

Any of us here at DebtFree24.com are wondering what it will take for this country to get the growing amount of citizens without coverage under control. With pharmaceutical companies making billions of dollars and holding the medical industry at all time highs in earnings – it is certain that out government will not socialize it medical industry.

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