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My guess is when you are signed up for employee provided or subsidized medical insurance, the law requires you to list any pre existing conditions, if you fail to do so your not covered for said condition.

Actually, under HIPAA, the pre-existing condition must be covered IF the person is already covered (hence the "portability" word). This is why it is crucial for people to opt into COBRA coverage if they lose their employment and corresponding coverage. It is expensive, but the potential for financial catastrophe should make one think before going without.

My take on the "half of bankruptcies due to medical costs" angle is that when people incur a medical debt that reaches several thousand dollars, they are more likely to file because there is no tangible product of the expense or intent to incur the debt in the first place. One thinks: "Where did this come from? I didn't ask for this?"

I believe someone who knowingly opts for purchases or expenses leading to financial trouble is more likely to try to dig their way out before filing. As stated in many posts, $12k (while not chicken feed) is manageable debt at even low income levels.

Thank you for that info on HIPAA. There do seem to be a lot of tools available---besides bankruptcy---to shore up one's financial footing.

My take on the "half of bankruptcies due to medical costs" angle is that when people incur a medical debt that reaches several thousand dollars, they are more likely to file because there is no tangible product of the expense or intent to incur the debt in the first place. One thinks: "Where did this come from? I didn't ask for this?"

I agree. I think the response to $12K in medical bills often is "it's not fair!" No one actually has to *pay medical bills,* do they?

But racking up $12K on the ole card for a couple of vacations or various consumer items seems very "fair."