Health Insurance Costs and SSDI

How Rising Health Insurance Costs Are Pushing More People Toward SSDI

Health insurance costs and SSDI applications are both on the rise right now. And with those trends, some people are applying for SSDI (Social Security Disability Insurance) with the hopes it might help cover their growing medical expenses.

If you’re feeling crushed by medical bills and rising insurance costs, you’re not alone. More Americans than ever are facing unaffordable healthcare, even with insurance.

But depending on your situation, there may be more – and better – solutions available to you.

The Problem Pushing People to SSDI

Between high premiums, deductibles, and copays, it can feel like you’re paying thousands for coverage that still leaves you with massive out-of-pocket expenses. For people living with chronic health issues or sudden medical crises, this financial pressure might push them to consider Social Security Disability Insurance (SSDI) as a way to survive.

But here’s the thing: SSDI is a powerful tool if you truly can’t work due to disability – but it’s not designed to fix medical debt. If your main issue is debt, bankruptcy might offer faster, more direct relief and a better chance of success.

Neither option works for everyone, and the process for both might feel confusing. Fortunately, we handle both SSDI and bankruptcy cases. So we can help you understand what option really fits your needs – and guide you through the process from start to finish.

When SSDI Might Be the Right Option

If your medical condition is serious enough that you can’t work full time for at least 12 months, SSDI could be a lifeline. You may qualify for monthly benefits that help you cover basic living expenses like rent, utilities, and groceries.

Some signs SSDI might be right for you:

• You’ve had to quit your job or reduce your hours significantly because of your health.
• Your condition is expected to last a year or more.
• You’re seeing specialists and following a treatment plan.
• You’re unable to perform the type of work you’ve done in the past – and you can’t switch to a different kind of work because of your condition.
• You’ve worked enough over the years to earn the necessary work credits for SSDI.

SSDI comes with several long-term benefits. You’ll get monthly income support, along with access to Medicare after a waiting period. It allows a little more financial stability for people who need it most.

However, it’s meant for people with disabilities – not just high healthcare costs. As a result, it limits the amount of income you can earn in a year.

And applying isn’t easy. Most people are denied at first. That’s why working with an SSDI lawyer can make a huge difference in your outcome.

When Bankruptcy Might Be the Better Option

Now, let’s say you’re still able to work – or your health condition hasn’t completely forced you out of the workforce – but your debt is out of control because of medical bills. In that case, applying for SSDI may not be the best solution. You could wait months or even years just to be denied, all while your bills pile up.

Bankruptcy, on the other hand, offers a legal way to wipe out your medical debt fast.

Bankruptcy might be right for you if:

• Your main issue is debt, not your ability to work.
• You’re getting calls from collectors or threats of lawsuits over unpaid medical bills.
• You’re falling behind on rent, utilities, or other necessities because of health-related expenses.
• You don’t qualify for SSDI but still need serious financial relief.

Depending on your situation, Chapter 7 bankruptcy could discharge all of your unsecured debt (including medical bills), and Chapter 13 bankruptcy could help you get on a manageable payment plan while protecting your assets.

Best of all, bankruptcy has no effect on your ability to apply for SSDI in the future, if your condition gets worse. That means you can use it now to get relief and still pursue benefits later if your health declines. You can even file bankruptcy while waiting for an SSDI decision.

What you decide depends entirely on your situation and goals. That’s why you should always work with a bankruptcy attorney who won’t pressure you one way or the other.

Why It Helps to Work with a Law Firm That Handles Both

You may not be sure whether you should pursue SSDI or bankruptcy, but you know something’s wrong and you need help.

When you’re sick and overwhelmed by bills, everything feels urgent but also confusing. And it can make a world of difference to talk with a team that understands both systems.

As a Memphis law firm that focuses on SSDI and bankruptcy, we can sit down with you, listen to your story, and help you decide what will bring you the most relief – legally and financially.

We look at your goals and abilities and talk openly about what you want from your situation within the constraints of the law. We don’t pressure you one way or the other. And once you do decide on a path forward, we support you every step of the way.

Let’s Find the Right Path for You

Health insurance costs and SSDI can be extremely overwhelming. But you don’t have to suffer through this alone.

Whether your health has made it impossible to keep working or your debt is swallowing you whole, we’re here to help you find real, lasting solutions.

If you aren’t sure whether to file for SSDI or bankruptcy, or if you’re considering both, contact us today for a free consultation.

We’ll help you figure out what your next step should be and start you on the path to a better financial future.