Millions Declaring Bankruptcy for Healthcare, Even Though They Have Insurance: A Group Seeks to Help
Strike Debt, the offshoot of Occupy Wall Street, the protest movement launched to fight corporate greed and corruption, has abolished $1.1 million in medical debt for more than 1,000 people, it announced Friday. The group is a welcome effort to fight on behalf of millions of Americans who find themselves drowning in debt while trying to simply pay for the essentials, like an education or healthcare. Now, in America, it is impossible to get sick or go to college without seriously considering owing someone thousands of dollars in the process.
In a statement, Strike Debt said that the way they achieved their goal was by buying emergency room debts for pennies on the dollar and then instead of pursuing the people to collect their money, they simply wiped out the customers debt forgiving them. This allows them to help people with debt relief at a far greater magnitude than they could if they were paying fresh debts.
Banks, hospitals, lenders or other companies sell off debts that they are owed, that they have little chance of collecting on, to debt buyers or collectors. These debts are often sold at much lower price than the original debt. Then its up to the debt buyer to try to claim the money from the debtor.
This new method of helping people by Strike Debt, called “Rolling Jubilee,” is to challenge the “predatory” lending system, according to its website. Strike Debt has planned a week of action March 16–23 in response to what it calls a “healthcare emergency.”
A majority of personal bankruptcies in the United States are linked to medical bills, with 75 percent of people declaring bankruptcy even though they have health insurance, Strike Debt’s mission is to stop this happening by striking the debt altogether.
According the Strike Debt, “Our privatized health care system buries ordinary people in debt all to enrich the 1%.”
There are numerous studies showing that even though the United States has some of the most expensive drugs in the world, our healthcare is not better than many other countries. Strike debt has paid off debts for 1,064 people, which they erased completely. This amounts to about $900 in debt per person. The people are randomly selected and will receive notices saying that their debt has been forgiven.
“The basic premise is simple: people shouldn’t have to go into debt for an education, because they need medical care, or because they have to put food on the table during hard times,” Occupy’s website says.
A telethon and variety show called “The People’s Bailout,” was the launching of Strike Debt’s campaign, held in November in New York. It was aimed at raising money to buy defaulted debts, such as unpaid student loans and medical bills, and erase them.
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5 Responses to Millions Declaring Bankruptcy for Healthcare, Even Though They Have Insurance: A Group Seeks to Help
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I know exactly what you mean. I was a passenger on a city bus that was struck by a car. It was the car drivers fault. I received a sprained neck and a $1500 bill from the hospital and ambulance service. In the process of trying to get my medical bills paid, I am running into one brick wall after another. Lawyers say that it’s not “worth” them investing their time, so I go it alone. Of course the car drivers insurance company (fortunately there was some) denies that I was injuried, even with the hospital report. I’m a full-time student, P/T worker who does NOT have the time or energy to deal with all of the BS that is sprewing from the ins. co. mouth. Any advice out there for me? By the way, my neck still aches and I understand that there is a time limit on claims.
D.D.Reeves
March 18, 2013 at 8:56 pm
I have been there done that and then some. File a complaint with the Insurance Commission. Check with a law school and see if they will take your case. You may not have to pay anything, but the students will get some experience.
Good luck.
Regina
March 31, 2013 at 5:48 am
@D.D. Reeves: If you are unable to find a lawyer to take your case then you will have to find the time and energy to get what you deserve. When insurance companies are aware that you are representing yourself they will drag the case on for a couple of years. The statue of limitations is two years. You will have to fight. The insurance company will give you the run around…because they can..and they understand you may not have the expertise or knowledge to fight them over a long period of time. It’s a long and frustrating battle. I would continue to look for an attorney who can assist you. I am speaking from experience. Hope the best for you.
Princess P.
March 19, 2013 at 6:08 am
@Princess P. Thanks for the advice and I “WILL” continue my quest. I have a break from school coming up in a few weeks so I guess this is the time to get my ‘lawyer list’ together. By the way, I have begun educating myself on the necessary paperwork involved. Google is a godsend. I’m an older fellow (post-50), and i’m still inprocess of catching up with the times. Thanks again for your encouragement.
Dwight D. Reeves
March 20, 2013 at 1:39 pm
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