Insured Patients and Bankruptcy

 Posted on October 08, 2013 in Bankruptcy

Many people assume most bankruptcy filings are due to out-of-control spending habits or poor money management.  However, according to a study published in The American Journal of Medicine, one of the biggest reasons people file for bankruptcy is unpaid medical bills.

More surprising is that many who file for bankruptcy due to medical bills have health insurance.  So even with the expansion of health care coverage through the Affordable Care Act, there will still be people struggling under the weight of medical bills.  Understanding the expenses related to health insurance can help you be financially prepared.

Monthly Premiums

Unless you have an employer covering your full monthly premium, most people will have to pay at least part of this to have health insurance.  The amount you’ll pay for your monthly premium has many variables, including the amounts set for your deductible, co-payments and co-insurance.

Deductibles

A deductible is the amount of money you must pay before the health insurance company will begin paying benefits. Deductibles range considerably depending on your plan. Many people try to save on their monthly health care premiums by selecting plans with high deductibles.  This can be an effective strategy but a high deductible can be a real challenge if you ever need to pay it.

Co-Payments and Co-Insurance

Once your deductible is met, you may have co-payments and co-insurance to pay.  A co-payment is a specific dollar amount you may be required to pay each time you visit the doctor.  A co-insurance is a percentage of the covered service you may be required to pay.

Lifetime Maximum

Sadly, a serious illness or injury can deplete your health insurance completely, as many health insurance plans have a lifetime maximum.  This means that once your insurer has paid out a specific dollar amount, you no longer have benefits from that company.

What Can I Do?

You should discuss your financial concerns with your doctor.  While you do not want to compromise the quality of your care, sometimes good options are available that are less expensive.  And do not be afraid to shop around.  Look for cheaper prescription drugs and cheaper diagnostic tests.  Finally, discuss payment plans with your doctor’s office.

If you find yourself with mounting medical bills you cannot pay, bankruptcy may be the best option for you.  Contact an experienced Texas bankruptcy attorney today.