Issues with Medicaid may be increasing the number of bankruptcies

There have been many recent developments in healthcare that residents of Mississippi should be aware of, particularly because these changes might have impacts on their financial situations. The Affordable Care Act has received most of the attention, but Mississippi's treatment of Medicaid should also be a focus for residents of the state. It is possible that it might be linked to an increase in personal bankruptcy.

Many Mississippians may think that the situation surrounding medical expenses is improving in light of the recent implementation of the Affordable Care Act. For instance, one Mississippi couple in their twenties who did not have insurance for three years was able to purchase an insurance policy to help cover financial challenges resulting from healthcare. This is not the only current consideration for healthcare in Mississippi, however.

Another important issue affecting people's financial situation is the state's treatment of Medicaid. Specifically, Mississippi decided to reject Medicaid expansion. It will not raise the income ceiling to allow more low-income residents to qualify for Medicaid. Thus, the state will not receive federal funding which would allow qualifying individuals to have costs completely covered. In the case of the young couple, this means that all of their insurance costs will not be covered and they may continue to struggle to pay the costs of insurance along with their other bills.

Consequently, filing for bankruptcy may be the only solution for some individuals facing debt that accumulates as a result of medical expenses. The purpose of bankruptcy is to help individuals eliminate debt and get a handle on their finances. In terms of medical debts, this means that an individual may be able to discharge outstanding hospital expenses and other bills.

While it might not be immediately apparent, it seems that the recent rejection of Medicaid funding will lead to an increase in the number of bankruptcy filings in the state. Those dealing with financial hardships should seek to better understand their situation so the can take appropriate action, such as filing for bankruptcy.

Source: News America Media, "As Miss. Rejects Medicaid Expansion, a Family Vows to Leave," Khalil Abdullah, Oct. 23, 2013

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