The first thing which needs to be clarified is about the term medical bankruptcy. Actually, there is no legal term such as medical bankruptcy. This generally refers to the bankruptcy which is being filed by people due to inability to pay medical bills to the hospitals and nursing homes. There have been studies all over the United States which prove the medical bills are one of the most common reasons for people to file for bankruptcy.
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.
So, it is mandatory that people take necessary steps to prevent themselves from this ugly situation. Here are a few steps which are common and should be taken to avoid the situation of medical bankruptcy.
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 third point to remember is that you should never convert your medical bill to your credit card. This is a very big mistake. Also, you should not take loans to pay off your medical bills. It is a better idea to talk to the hospital and try to convert it into a monthly payment or relax your payment terms. - 29969
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.
So, it is mandatory that people take necessary steps to prevent themselves from this ugly situation. Here are a few steps which are common and should be taken to avoid the situation of medical bankruptcy.
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 third point to remember is that you should never convert your medical bill to your credit card. This is a very big mistake. Also, you should not take loans to pay off your medical bills. It is a better idea to talk to the hospital and try to convert it into a monthly payment or relax your payment terms. - 29969
About the Author:
The author writes articles on personal finance and bankruptcy including medical bankruptcy and how to find a bankruptcy alternative.
