2005/01/01 by David U. Himmelstein, Elizabeth Warren, Deborah Thorne +1 · 7 citations
Business, Management and Accounting · Economics, Econometrics and Finance · Health Professions · #Financial Literacy, Pension, Retirement Analysis #Healthcare Policy and Management #Homelessness and Social Issues
paper · doi:10.1377/hlthaff.w5.63
openalex publication_date 2005/01/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/01
In 2001, 1.458 million American families filed for bankruptcy. To investigate medical contributors to bankruptcy, we surveyed 1,771 personal bankruptcy filers in five federal courts and subsequently completed in-depth interviews with 931 of them. About half cited medical causes, which indicates that 1.9-2.2 million Americans (filers plus dependents) experienced medical bankruptcy. Among those whose illnesses led to bankruptcy, out-of-pocket costs averaged dollar 11,854 since the start of illness; 75.7 percent had insurance at the onset of illness. Medical debtors were 42 percent more likely than other debtors to experience lapses in coverage. Even middle-class insured families often fall prey to financial catastrophe when sick.