Medical bankruptcy is on the rise in the US. This is generally because of rising costs of health care, households on the brink of financial collapse when an emergency comes along, and using home equity to pay for the medical bills. Bankruptcy, in general is on the rise. Some data indicates that medical inflation is going down for the first time in 35 years.
Nobody should expect this trend to continue. If it did, we would solve our debt crisis at the expense of blowing up our unemployment rate by killing one of the only working job engines in the country, our health sector.It's troubling to think that medical inflation is both the engine of our health care industry — our top sector in the next decade — and the engine of our debt accumulation in the next few decades, which is presumably something we'd like to slow. When I think about how health care spending is central to job creation in hundreds of cities across the country, and also how curbing the growth of health care spending is central to our financial stability, my head sort of wants to explode.