Americans are not new to medical debt, but it seems that a vast majority are more than just struggling to pay- they are buried in accumulated debt of medical bills. In fact, recent analysis has shown that over 40 percent of Americans are having problems paying their bills.
According to a new study conducted by NerdWallet, medical bills are the number one source of debt in America. Additionally, the research team also found that medical debt is the top cause of personal bankruptcy in the United States. The Consumer Financial Protection Bureau accomplished a report revealing that consumers experience their credit scores being over penalized, including consumers with health insurance. Essentially, these recent findings reveal that the United States is in a medical debt crisis, partly caused by medical billing errors and hospital pricing gaps, This reflects a systemic problem, from a billing system riddled with error, to a seeming lack of price transparency and medical standards, says the study report. The year 2012 alone saw over $21 billion of medical debt collected from American consumers.
Medical debt encompasses the largest percent of debt in the United States that it toppled student loan debt. According to the study, this year an estimate of 51 million American adults will be contacted by third-party debt collectors about a medical bill.
The United States' flawed billing system is seen as a great contributor to the medical debt of the country, as confirmed by the study. The researchers found that 49 percent of Medicare claims had billing errors. Experts note that this is a widespread problem in hospital billing.
The organization Medical Bill Advocates of America has assisted consumers and helped save over $100 million for 20 years now, cutting down on medical bills. Pat Palmer, the president of the organization, says that a large percent of the money saved came from pointing out errors and overcharges on hospital billings, as well as improper insurance reimbursements.
