Women Face Medical Debt Crisis: Healthcare Cost Report
Author: Ian C. Langtree - Writer/Editor for Disabled World (DW)
Published: 2012/07/30 - Updated: 2026/01/14
Publication Type: Informative
Category Topic: Finance - Related Publications
Page Content: Synopsis - Introduction - Main - Insights, Updates
Synopsis: This report examines the disproportionate burden of medical debt on women in the United States, drawing from Commonwealth Fund research that reveals one in four American women struggled with medical bills during 2009-2010. The information proves useful to patients, advocates, and policymakers because it identifies specific gender-based healthcare cost disparities - women use more health services yet earn less income while simultaneously facing higher insurance charges than men. For individuals with disabilities and seniors who typically require more frequent medical care, the report's detailed analysis of debt management options, including bankruptcy protections for retirement accounts and the classification of medical bills as unsecured debt, offers practical financial guidance that many people don't realize exists when facing overwhelming healthcare expenses - Disabled World (DW).
Introduction
The Commonwealth Fund, a non-profit organization that advocates for health care reform, recently released a report indicating that 26 percent of women in the United States struggled with paying medical bills in 2009-2010. These numbers pale in comparison to other nations. 13 percent of Australian women endured such problems, and only 4 percent of German women reported such trouble.
With 35 million women uninsured (or under-insured), the report is further evidence that medical bills continue to drive women into debt.
Main Content
In an interview with NBC News, Commonwealth Fund Vice President Sara Collins explained that women are particularly at risk of not being able to afford medical costs. The report showed that women used more health services compared to men and insurers charged them more, even though women had lower incomes than men. The disparity was especially problematic with women in their childbearing years.
The report's findings also suggest that many Americans are still reluctant to default on medical expenses. Instead of not paying medical bills, they will often take out a new credit card (and create more debt) simply to cover health care costs. Before the real estate market crashed in 2008, it was very common for consumers to refinance their homes and use untapped equity to pay off medical debts. While they alleviated short term debt problems, interest payments eventually became unsustainable when other life problems intervened.
Tragically, most people do not realize the options available to them to establish payment plans to manage debt, or how retirement plans are protected in bankruptcy. As such, it is important for women mired in debt to understand their legal rights and options before depleting all of their resources.
Medical Debt Under the U.S. Bankruptcy Code
Medical debts can be discharged in Chapter 7 or Chapter 13 bankruptcy in the same way that credit card debt and personal loans can be eliminated. Medical bills are essentially service debt - costs and expenses accrued as a result of undergoing treatment for a disease, procedures to correct health problems or administrative fees attached to medical care. As such, they are considered unsecured debt under the U.S. Bankruptcy Code, (meaning that there is no tangible property securing the debt). Through a bankruptcy petition, you may seek court approval to obtain a discharge, thereby eliminating your legal obligation to pay that debt.
So, while creditors can seek legal judgments and even garnish wages to collect on unpaid medical expenses, bankruptcy can protect savings accrued in 401k and other retirement accounts, as well as your car and home. If you or a loved one is burdened with medical debt, an experienced attorney can help you make an informed decision about bankruptcy.
Insights, Analysis, and Developments
Editorial Note: The gender gap in medical debt represents more than just numbers on a balance sheet - it reflects a fundamental flaw in how our healthcare system interacts with economic realities. Women's higher utilization of health services often stems from necessary preventive care and reproductive health needs, yet the financial penalties they face for maintaining their health can trap them in cycles of debt that drain retirement savings and compromise long-term financial security. Understanding that medical debt qualifies as unsecured debt under bankruptcy law gives struggling patients a crucial lifeline, though the real solution requires systemic reform that prevents healthcare from becoming a path to financial ruin in the first place - Disabled World (DW).
Author Credentials: Ian is the founder and Editor-in-Chief of Disabled World, a leading resource for news and information on disability issues. With a global perspective shaped by years of travel and lived experience, Ian is a committed proponent of the Social Model of Disability-a transformative framework developed by disabled activists in the 1970s that emphasizes dismantling societal barriers rather than focusing solely on individual impairments. His work reflects a deep commitment to disability rights, accessibility, and social inclusion. To learn more about Ian's background, expertise, and accomplishments, visit his full biography.