Many families face financial difficulties because unexpected medical costs were not covered by their health insurance. All too often, this is because a physician or health care provider is out of network, a fact unknown to the participant at the time of service. Fortunately for many, the No Surprises Act, effective January 1, 2022, minimizes the amounts that participants in a group health plan must pay for medical care received from physicians or other healthcare providers outside of their … [Read more...]
Information Is King When Considering Bankruptcy Protection
Bankruptcy is often the last resort for millions of families overburdened with debt. Bankruptcy serves as a financial safety net for families trying their best to stay financially afloat when they are faced with insurmountable debt such as uninsured medical expenses or credit cards used to make ends meet. Bankruptcy law offers individuals or couples bankruptcy protection under chapter 7 or chapter 13 bankruptcy. Generally speaking, in a chapter 7, debtors surrender their nonexempt assets to … [Read more...]
Tax Exempt Hospitals Under Scrutiny for Aggressive Debt Collection Practices
Tax exempt hospitals are required by law to provide charity care to patients who cannot afford their hospital expenses. Furthermore, nonprofit hospitals cannot go after past due balances through extraordinarily aggressive debt collection actions such as suing these patients or seeking the garnishment of their wages. However, according to an investigation recently published by MLK50, a member of ProPublica, that is exactly what one of the largest healthcare systems in the country did when poor … [Read more...]
When Health Insurance is Not Enough
Americans purchase health insurance to avoid financial ruin in the face of a catastrophic illness. However a recent survey of people who have had medical emergencies show that health insurance seldom offers the financial protection many had hoped for. Unfortunately, most people do not know what they are in for when they turn to insurers in a medical crisis. More than a third of people that fall seriously ill wind up spending most of their savings while they are sick and get behind on just … [Read more...]
Recovering From Illness or Injury Impacts Finances
Many people that carry health insurance do so to protect themselves from the economic risks of a serious health event; however, a recent study shows that despite having health insurance, incidences of illness or injury can wreak havoc on the finances of Americans leading some to file for bankruptcy protection. In California for example, people between the ages of 25 and 64 are at an increased risk for bankruptcy following hospitalization. Even though many have health insurance to help cover … [Read more...]
Bankruptcy Helps Families Tackle Medical Bills
By percentage of its economy, the U. S. spends twice as much on health care as other advanced industrialized countries, although just a few decades ago our spending was about the same. So what happened? Are we just using more healthcare or are our facilities nicer? Although, there may be some truth in those ideas, by and large, the reason we spend more is because Americans have to pay more for health care. The prices have just gone up A recent study in JAMA by scholars from the Institute for … [Read more...]
Bankruptcy Protection If You Become Disabled
People who file for bankruptcy often do so as a result of a traumatic life experience, such as a divorce, job loss, or a medical emergency. Another common reason to file for bankruptcy is the presence of a disability. Some disabilities can prevent you from working temporarily or permanently, making it difficult, if not impossible, to keep up with your financial obligations. Fortunately, through personal bankruptcy, you may be able to eliminate some or all of your debts and keep creditors … [Read more...]
Medical Bankruptcy on the Rise
The leading cause of bankruptcy is not overspending, nor lack of adequate financial planning, but the financial free fall caused by a health crisis. Despite recent advances in the health care policy, American households continue to struggle with medical debt, and it’s only getting worse. Americans are putting more of their take-home pay toward medical costs than ever before and, oftentimes, are not keeping up. Medical debt collected by third-party collections agencies is roughly three times as … [Read more...]