Bankruptcy Due To Medical Bills
The first misconception which needs clarification is that there is no such legal term as medical bankruptcy. Medical bankruptcy is one of the most commonly misunderstood things in medical field. What it actually means is that there is bankruptcy which a person had to file due to his inability to pay his medical bills. Elizabeth Warren, a Harvard professor, wrote recently that a study had shown that medical costs were a major factor in bankruptcy filings in the United States.
Medical insurance may not be the way to prevent medical bankruptcy. You may get surprised to know that even medically insured people had to file bankruptcy in many cases. As per studies, US citizens filing for bankruptcy with private medical insurance had unpaid health care costs of an average of around $17K. While those who filed without coverage reported average unpaid medical bills of $27K. Even though there is nine thousand dollars difference between the two figures, it still shows that private medical insurance is not working.
Therefore, it is required that people take required steps to make sure that they do not fall into this situation where they have to file for medical bankruptcy. Some of the simple steps which they can take to avoid this situation are given below.
The easiest and first thing which they can do it to take comprehensive health insurance coverage for themselves and their family. It is mentioned above that medical insurance may not be effective in all cases but if the coverage is comprehensive, it should be a great help in such emergencies. Even if the coverage is costly and you have to reduce spending somewhere else in your monthly budget, this is probably worth it.
The second important thing to remember is to carefully examine your medical bills. It is not uncommon to find mistakes in the medical bills sent by the hospital. You have the absolute right to ask for the services provided by the hospital as mentioned in the bill. Sometimes, it can lead to savings of hundreds of dollars.
The last thing to remember is that you should never pay your medical bills using a loan or through a credit card which you cannot repay immediately. The loans and credit card balances incur a huge amount of interest. It is better to talk directly with the hospital and see if there is a way in which your payment terms can e relaxed a bit.
Medical insurance may not be the way to prevent medical bankruptcy. You may get surprised to know that even medically insured people had to file bankruptcy in many cases. As per studies, US citizens filing for bankruptcy with private medical insurance had unpaid health care costs of an average of around $17K. While those who filed without coverage reported average unpaid medical bills of $27K. Even though there is nine thousand dollars difference between the two figures, it still shows that private medical insurance is not working.
Therefore, it is required that people take required steps to make sure that they do not fall into this situation where they have to file for medical bankruptcy. Some of the simple steps which they can take to avoid this situation are given below.
The easiest and first thing which they can do it to take comprehensive health insurance coverage for themselves and their family. It is mentioned above that medical insurance may not be effective in all cases but if the coverage is comprehensive, it should be a great help in such emergencies. Even if the coverage is costly and you have to reduce spending somewhere else in your monthly budget, this is probably worth it.
The second important thing to remember is to carefully examine your medical bills. It is not uncommon to find mistakes in the medical bills sent by the hospital. You have the absolute right to ask for the services provided by the hospital as mentioned in the bill. Sometimes, it can lead to savings of hundreds of dollars.
The last thing to remember is that you should never pay your medical bills using a loan or through a credit card which you cannot repay immediately. The loans and credit card balances incur a huge amount of interest. It is better to talk directly with the hospital and see if there is a way in which your payment terms can e relaxed a bit.
About the Author:
The author suggests articles on personal finance and bankruptcy including medical bankruptcy and how to find a bankruptcy alternative.
You like it? Share it!
posted by SolveItQuick at
10:47 AM
0 Comments:
Post a Comment
<< Home