Medical bills are overwhelmingly huge in the US. Getting rid of them would decrease the problem to simple unemployment.
Sure being unpaid for a time is bad, but you won't be massively in the red...
And this specific example, the guy is well off. Which if not for medical bills, they'd all be fine.
To reword your comment, " Something very bad is happening, but because the remedy wouldn't completely go away it's not worth doing?"