A recent study by CEPR explores how repeated health crises can deepen financial instability within households. When families face medical emergencies more than once, their ability to maintain economic stability often deteriorates significantly. The research highlights that such recurring shocks not only drain savings but also increase reliance on credit and heighten the risk of long-term debt accumulation. These compounding pressures can lead to reduced access to essential services, housing insecurity, and diminished overall well-being.\n\nThe analysis emphasizes that households lacking robust safety nets—such as comprehensive insurance or emergency funds—are especially vulnerable. In the absence of protective mechanisms, even moderate health events can trigger cascading financial consequences. The report suggests that policy interventions aimed at strengthening social protections could mitigate some of these adverse outcomes. By improving access to affordable healthcare and expanding financial resilience programs, governments may help buffer families against the dual burden of medical and economic hardship.\n— news from CEPR\n\n— News Original —\nJust a moment…\n\nWhen loss strikes twice: Health shocks and household financial distress CEPR