The ACA Reduced Personal Bankruptcies by Fifty Percent

by Pluralist Berry –

As Republicans continue to face incredible opposition in their plans to take away healthcare from millions of Americans, some more news has come out showing yet another way that the Affordable Care Act has been benefiting people. Allen St. John of Consumer Reports writes.

Since its adoption, far fewer Americans have taken the extreme step of filing for personal bankruptcy.

Filings have dropped about 50 percent, from 1,536,799 in 2010 to 770,846 in 2016 … Those years also represent the time frame when the ACA took effect. Although courts never ask people to declare why they’re filing, many bankruptcy and legal experts agree that medical bills had been a leading cause of personal bankruptcy before public healthcare coverage expanded under the ACA. Unlike other causes of debt, medical bills are often unexpected, involuntary, and large.

This new report directly undermines the talking points of right-wing cranks like Megan McArdle, who this past January dismissed claims that medical bankruptcies had decreased, claiming that it’s surprisingly hard to know exactly which bankruptcies are medical.” Now, we do know, and it turns out that it’s a lot (765,953!) I guess that this is one of the reason’s why the ACA is more popular than ever.

 

Reprinted with permission from Daily Kos