Forgiving Medical Debt
In the United States, medical debt is a major financial burden for many households. In fact, medical debt is the leading cause of personal bankruptcy filings in the country (Giovanetti, 2021). There are a number of reasons why medical debt is so difficult to repay, including the high cost of healthcare, unexpected medical expenses, and long-term illnesses. Given the significant financial hardship that medical debt can cause, there has been increasing calls for the United States Federal Government to forgive medial debt.
There are a number of arguments in favor of forgiving medical debt.
1. First and foremost, medical debt is often incurred through no fault of the patient's own. Illness and accidents can strike anyone at any time, and even with insurance, the costs of treatment can be prohibitive. Forgiving medical debt would provide a measure of relief to those who are struggling to make ends meet.
2. Second, medical debt forgiveness would free up resources that could be better used elsewhere. Hospitals and other medical providers could use the money that would otherwise go towards collecting debt to provide additional services or hire more staff.
3. Third, forgiving medical debt would send a strong signal that the well-being of patients is a priority. This would help to build trust between patients and providers and improve the overall quality of care.
4. Additionally, forgiving debt would provide relief to households struggling with financial hardship.
5. Plus, it would free up money that could be used to pay for other essentials, such as housing or food.
6. At last, forgiving debt would likely have a positive ripple effect on the economy, as consumers would have more disposable income to spend.
However, there are also a number of arguments against forgiving medical debt. Forgiving debt could encourage people to take on more debt than they can afford, as they would not have to worry about repaying it. In addition, forgiven debt could lead to higher taxes for everyone else, as the government would have to make up for the lost revenue (Peacock, 2021).
Ultimately, whether or not to forgive medical debt is a complex issue with pros and cons on both sides.
References
Giovanetti, E. (2021). Medical debt is the leading cause of bankruptcy, data shows: How
to reduce your hospital bills. Retrieved from https://www.foxbusiness.com/personal-finance/medical-debt-bankruptcy-hospital-bill-forgiveness
Peacock, A. (2021). Debt forgiveness: The pros and cons. Retrieved from
https://www.lexingtonlaw.com/blog/finance/debt-forgiveness.html
