How Can You Escape Medical Debt in the US?
How Can You Escape Medical Debt in the US?
The U.S. leads the world in several key economic areas but not for the reasons we’d like. For example, we spend about 20% of gross domestic product (GDP) on healthcare—more than any other country in the world—but lack universal healthcare. This makes America the leader in another unfortunate category: bankruptcy from medical debt.
Here’s some key statistics you should know about medical debt and how to avoid it (hint: moving abroad helps!):
1) Medical expenses cause most bankruptcies
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Medical costs directly lead to two-thirds of all bankruptcies in the U.S. Medical problems that keep people out of work cause 44% of bankruptcies.
2) Not enough money
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Households that file for medical bankruptcy earn about $2,600 per month, on average.
3) Support the troops, right?
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Twenty percent of all households that file for medical bankruptcy are military families.
4) Fear of bad health
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Just under half of all Americans fear that a major health event will land them in bankruptcy.
5) Too much money for not enough care
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In 2021, 71% of American households believed they spent too much money for the quality of medical treatment they received.
6) GoFundMe isn’t health insurance
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From cancer treatment to burial expenses, Americans try to close the debt gap through crowdfunding. Over 250,000 medical fundraisers launch on GoFundMe every year.
7) Stuck in the middle (age)
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Although Americans file for medical bankruptcy at all ages, the average age is about 45 years.
8) Insurance isn’t enough
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Fifty-nine percent of uninsured Americans carry medical debt. Even insurance isn’t enough; roughly 56% of insured Americans carry the debt, too.
9) Bye-bye, nest egg
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Of all American adults with medical debt, 48% drained their life savings to pay the bills off.
10) What out-of-pocket max?
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An adult in the U.S. spends over $12,000 annually on medical care, including deductibles and premiums.
11) Goodbye to your retirement
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Couples that retire at age 65 should expect to pay another $275,000 in medical bills before they both die.
12) Cross my fingers, hope (not) to die…
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In 2019, about 41% of Americans declined a visit to the emergency room because of exorbitant costs.
13) …too late
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Over 12.6 million U.S. residents reported losing a loved one in 2021 after the person avoided healthcare due to costs.
14) Too broke to get sick
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Roughly 40% of Americans are concerned about affording medical care next year, even with insurance.
15) Medical bills > home ownership
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Of all Americans planning on buying a home, 46% of them are delaying the purchase because of medical debt.
16) When does it end?
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Thirty-two percent of Americans with medical debt don’t believe they’ll ever be able to pay it off.
Solution: Spain
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Along with having a cost of living that’s 40% cheaper than the U.S, Spain guarantees affordable healthcare as a constitutional right. Residents can join Spain’s public healthcare system after one year of residency.
➤ Learn more about moving to Spain
Solution: Costa Rica
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Costa Rican residents can pay 7-11% of their income to join the Caja, their universal healthcare plan, and pay no additional medical costs.
➤ Learn more about moving to Costa Rica
Solution: Germany
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Germany requires healthcare for all residents. Its universal healthcare plan is heavily subsidized by the government; employees pay about 7% of their salary into it. Prescriptions cost about $12.
➤ Learn more about moving to Germany
Solution: Brazil
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Brazil’s public healthcare system covers everyone in its borders, regardless of work or legal status. There’s no cost or paperwork needed to access healthcare. Source
➤ Learn more about moving to Brazil
The High Cost of Living in the US: You Won’t Believe How Much Cheaper it is Abroad
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If you’re an Americans who wants to move abroad, you might have have an exaggerated view of how much it costs to live in cities around the world. Countries like Monaco, Switzerland, Australia, and Singapore can be extremely pricy, but you’ll find that the cost of living anywhere you go is less than you’ll pay in an average U.S. city.
➤ The High Cost of Living in the US: You Won’t Believe How Much Cheaper it is Abroad
Drug Co-Pays Slashed on 13 Drugs: Did Yours Make the List?
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Biden’s Inflation Reduction Act is putting money in seniors’ pockets quicker than expected. A federal judge has already sided with the plan, agreeing that the government can negotiate prices for Americans.
It looks like Medicare’s drug insurers see the writing on the wall—they’ll cut prices on 13 drugs beginning in 2024. That beats the negotiated terms by two years. The cut are steep: co-pays will be free or $11 on these medicines, down from $30-$50.
AARP says that one in five older adults skip prescriptions or doses to save money. According to Maya Golden’s exclusive report on Axios, these are the drugs you’ll be saving on next year.
➤ Drug Co-Pays Slashed on 13 Drugs: Did Yours Make the List?
Dying with Dignity: Best Countries for Seniors & End-of-Life Care
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One of our Instagram follower asks, “In [the U.S.], the late/end of life system is designed to bankrupt you and your family while providing dismal care. If someone is living on a limited income but would like to live in a country that provides affordable senior care with dignity, where can they go?”
Duke University created a study on end-of-life care and published an article called “Where is the Best Place to Die?” Their results ranked the U.S. 43rd of the 81 countries considered, based on criteria they created with 1200 experts and 181 palliative care experts. These were the 10 best countries for seniors:
➤ Dying with Dignity: Best Countries for Seniors & End-of-Life Care
Brett Andrews is the co-founder of Expatsi, a company that helps expats discover how to leave the U.S. Brett and his partner Jen developed the Expatsi Test to recommend countries to move to, based on factors like budget, visa type, spoken languages, healthcare rankings, and more. In a former life, he worked as a software developer, IT support specialist, and college educator. When he's not working, Brett loves watching comic book movies and reading unusual books.
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Brett Andrews is the co-founder of Expatsi, a company that helps expats discover how to leave the U.S. Brett and his partner Jen developed the Expatsi Test to recommend countries to move to, based on factors like budget, visa type, spoken languages, healthcare rankings, and more. In a former life, he worked as a software developer, IT support specialist, and college educator. When he's not working, Brett loves watching comic book movies and reading unusual books.