In Canada we wrap ourselves in a blanket of socialized healthcare and believe that our provincial medical plans will protect us from financial ruin. People are unaware that serious illness and medical debt can ruin you financially on both sides of the Border. We feel immune from the financial disaster that afflicts many Americans who experience a serious illness. We are bombarded in the news about the financial devastation that many Americans are going through with very little commentary about how Canadians are affected. According to the National Debt Relief Organization in the U.S.:
- 1.7 million Americans will be forced to file bankruptcy due to medical debt.
- Over 11 million Americans will burden themselves with more credit card debt to cover their healthcare costs.
- 56 million Americans will struggle with healthcare related bills.
As Canadians are we immune from the financial devastation of a serious illness? The answer is NO! According to Sun Life Financial:
- Nearly half of Canadians facing a major health incident like cancer or a stroke are struggling financially as a result of their illnesses.
- 40% of those surveyed earlier this year reported feeling financially strapped after a serious health event or diagnosis, while 53% of 45 to 54 year olds have been hit hard by unforeseen healthcare costs.
- Only 13% had money set aside for uncovered healthcare costs.
- Too many Canadians underestimate out-of-pocket health costs, especially when it comes to prescription drugs.
- Over the past 12 months Canadians spent an average of $1,354 on medical or healthcare products and additional services; but few set aside money to cover health costs, with more than 81% putting nothing aside.
- 20% had no group insurance, personal insurance or health expense savings to help absorb the shock.
- 22% turned to credit cards or personal lines of credit, another 22% tapped into personal savings, 12% borrowed from a loved one and 5% were forced to either remortgage or sell their home.
Are you facing financial ruin as a result of a serious illness? Contact Ira Smith Trustee & Receiver Inc. as soon as possible. Also do some self-study using our You can do some self-study by checking out our bankruptcy faqs. We can help you get back on your feet financially and let you concentrate your efforts on getting well.