Medical Related Bankruptcies by Country – Brilliant Maps

The
map
above
shows
the
share
of
bankruptcies
in
each
country
that
can
be
traced
back
to
either
direct
medical
costs
and/or
the
costs
related
to
lost
income
from
health
related
problems.

Here’s
more
about
the
sources
of
the
stats
for
each
country:

• United
  States:
  66.5%
• Canada:
  19%
• United
  Kingdom:
  8.2%
• Australia:
  7.25%
• France:
  0%

United
States

The
data
for
the
US
comes
an

Medical
Bankruptcy:
Still
Common
Despite
the
Affordable
Care
Act,
it
reports
on
a
survey
of
Debtors
Citing
Specific
Contributors
to
Their
Bankruptcy:
United
States,
2013–2016.

It
found
the
folloiwng:

Moreover:

The
share
of
debtors
reporting
a
medical
contributor
before
the
ACA’s
January
1,
2014
implementation
(65.5%)
and
after
implementation
(67.5%)
was
similar
(P = .37).
Both
of
these
figures
are
close
to
the
62.1%
estimate
from
the
2007
survey,
and
in
a
difference-in-differences
analysis
we
found
no
evidence
that
trends
differed
between
states
that
did
versus
did
not
accept
the
ACA’s
Medicaid
expansion
(P = .76).
The
responses
regarding
individual
items
in
the
current
survey
are
also
similar
to
those
in
2007,
when
57.1%
of
debtors
cited
medical
bills
as
contributors
to
their
bankruptcy
and
40.3%
cited
income
loss
due
to
illness.

Canada

The
data
for
Canada
comes
from
an
article
titled:

What
Are
The
Causes
of
Bankruptcy
in
Canada?
It
found
the
following:

Despite
universal
health
care
in
Canada,
people
are
filing
bankruptcy
for
medical
reasons;
19%
of
our
clients
cited
illness,
injury
and
health-related
problems
as
a
cause
of
their
financial
difficulties.

…

For
some,
financial
trouble
starts
with
time
off
work
recovering
from
their
health
problems.
During
their
convalescence,
they
may
use
credit
to
survive
and
pay
their
day-to-day
bills.
Once
they
return
to
work,
they
are
left
with
more
debt
than
they
can
handle.
Others
may
not
be
able
to
return
to
full-time
work
and
find
that
their
disability
income
is
not
sufficient
to
pay
their
debts
as
they
come
due.

United
Kingdom

The
data
for
the
UK

comes
a
report
from
the
former
Insolvency
Service, 
which
cites
Illness/accident
as
a
cause
for
8.2%
of
the
UK’s
bankruptcies
in
2004.
Unfortunately,
I
wasn’t
able
to
find
any
more
up-to-date
info.

The

National
Center
outlines
how
this
can
happen
in
the
UK:

The
idea
that
single-payer
systems
don’t
have
medical
bankruptcies
is
based
on
the
fact
that
health
care
is
“free”
at
the
point
of
service
in
such
systems.
 After
all,
if
people
don’t
have
to
pay
for
health
care
(at
least
not
directly),
how
could
they
have
a
bankruptcy
due
to
medical
bills?

For
starters,
medical
bills
are
not
the
only
way
a
medical
bankruptcy
can
occur.
 For
example,
if
you
have
an
illness
that
requires
a
major
operation
in
Britain,
you
are
likely
to
end
up
on
a
long
waiting
list.
 And
if
the
illness
renders
you
unable
to
work,
then
the
longer
you
are
on
the
waiting
list
the
more
your
finances
will
be
strained.

Australia

The
data
for
Australia
comes
from
2016/17
stats
from
the

Australian
Government,
which
claimed
that
1,830
of
the
25,225
personal
insolvencies
were
caused
by
ill
health,
which
works
out
to
7.25%.

Again
since
Australia
has
universal
healthcare
like
Canada
and
the
UK,
medical
related
bankruptcies
the
result
of
loss
of
income
around
an
illness/waiting
for
care
than
from
the
cost
of
the
care
itself
like
in
the
United
States.

France

Data
for
France
comes
from
Medical
Bankruptcies
Statistics
from

Balancing
Everything,
they
state
that:

 An
article
by

Stanford
Medicine
compares
the
US
medical
bankruptcy
statistics
with
those
of
France.
Their
research
highlights
that
in
2007,
62%
of
all
US
insolvencies
resulted
from
medical
costs.
By
contrast,
in
France,
there
were
no
medical-related
bankruptcies
in
2008.
The
main
reason
is
the
single-payer
system
that
ensures
everyone
gets
free
healthcare.
Stanford
Medicine,
however,
highlights
that
taxation
in
France
is
much
heavier
than
in
the
USA.

Struggling
With
Medical
Bills

The

LA
times,
also
has
some
interesting
stats
around
people
struggling
to
pay
medical
bills
in
general.
Here
are
the
main
stats
from
the
article:

This
means
5x
more
Americans
have
issues
with
catastrophic
health
spending
than
the
British.
Despite
the
fact
the
UK
spends
less
than
half
the
amount
per
capita
on
health
spending
compared
to
the
US.
The
main
downside
is
that
waiting
times
in
the
UK
are
far
longer
than
the
US.

Why
does
the
US
have
so
many
more
medical
related
bankruptcies?

Here
are
some
key
points
comparing
the
situation
in
the
US
to
other
countries:

• 
  High
  Out‐of‐Pocket
  Costs
  in
  the
  US:
  In
  the
  United
  States,
  many
  people
  face
  high
  deductibles,
  co-pays,
  and
  uncovered
  services.
  Research
  (such
  as
  the
  often-cited
  study
  by
  Himmelstein
  and
  colleagues)
  has
  suggested
  that
  a
  significant
  percentage
  of
  bankruptcies
  involve
  medical
  bills
  or
  the
  loss
  of
  income
  due
  to
  illness.
  Although
  the
  exact
  percentage
  is
  debated,
  the
  broader
  consensus
  is
  that
  medical
  expenses
  play
  a
  critical
  role
  in
  pushing
  many
  into
  bankruptcy.
• 
  Lack
  of
  Universal
  Coverage:
  The
  US
  does
  not
  have
  a
  universal
  health
  care
  system.
  This
  means
  that
  millions
  of
  Americans
  either
  lack
  insurance
  entirely
  or
  have
  coverage
  that
  doesn’t
  fully
  protect
  them
  from
  the
  high
  costs
  of
  major
  illnesses
  or
  unexpected
  emergencies.
  In
  contrast,
  countries
  with
  universal
  or
  national
  health
  care
  systems
  (like
  Canada,
  the
  United
  Kingdom,
  or
  many
  European
  nations)
  provide
  more
  comprehensive
  coverage,
  which
  significantly
  reduces
  the
  financial
  shock
  of
  medical
  events.
• 
  Protective
  Measures
  in
  Other
  Countries:
  In
  nations
  with
  universal
  health
  care,
  policies
  such
  as
  cost
  caps,
  comprehensive
  benefits,
  and
  government
  subsidies
  help
  ensure
  that
  individuals
  aren’t
  burdened
  with
  catastrophic
  expenses.
  As
  a
  result,
  medical
  bankruptcies
  are
  far
  less
  common
  because
  the
  financial
  risk
  is
  shared
  across
  the
  society
  rather
  than
  falling
  solely
  on
  the
  individual.
• 
  Complex
  Causes:
  It’s
  important
  to
  note
  that
  while
  medical
  expenses
  are
  a
  significant
  factor,
  bankruptcies
  in
  the
  US
  are
  usually
  the
  result
  of
  a
  combination
  of
  issues—including
  lost
  income,
  pre-existing
  financial
  vulnerabilities,
  and
  sometimes
  other
  debts.
  The
  term
  “medical
  bankruptcy”
  can
  be
  somewhat
  misleading
  since
  it
  rarely
  reflects
  a
  single
  cause.

How
do
you
think
medical
related
bankruptcies
should
be
handled?

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Author: Brilliant Maps