The GENII index shows the widening gap between increases in earnings and the cost of living. According to the GENII index, each year for the last 30 years, Americans today earn less spend-able income, after deducting modest living expenses, than at any time since 1975. Paramount among increases in the cost of living, hospital bill and medical expense increases far exceed those in most other traditional categories. In lock step with increases in medical expenses, medical insurance continues increasing at an alarming rate while services covered continue to decline. As a direct result, few people today are capable of paying for serious injury or illness absent extenive medical insurance coverage.
When an average income earner files medical bankruptcy, few trustees seriously question the necessity of discharging hundreds of thousands of dollars in un-payable debts. All too often, large medical expenses go hand in hand with debilitating illness and injury which degrade earning capacity. An exception to the rule pertains to injuries caused by the negligence of others or liability created by statute (i.e. workers compensation Acts). In these cases, when a third party insurance carrier may be liable for reimbursement because of an underlying cause of action, a statutory lien that secures repayment attaches to the cause of action and must be repaid despite filing bankruptcy.