That unpaid medical bills are a major factor driving people into bankruptcy is well documented. What is not as well recognized is the importance of having medical insurance, as a means of keeping health care costs under control.
A recent case that came to our attention illustrates this. An elderly retiree in the hospital had to be transported about 20 miles to another hospital for needed specialized care. The medical transport company billed $2700.00. Medicare would not cover this, but his Medicare supplement insurance paid just under $800. He paid a copay of $190.00.
The balance was not collectible.
The take-away is that medical insurance coverage does more than just cover the bills. Insurance carriers negotiate substantial rate discounts. But if you don’t have insurance, you get billed “full-freight”. Whether this system of billing makes sense or not, the reality is that medical insurance costs must be part of a careful debt recovery plan.
We encourage our clients, even those filing a bankruptcy, to heed this advice. Medical care and medical costs, like death and taxes, are a fact of life. Planning for them is critical. This is part of our holistic approach to helping our clients not just achieve immediate solutions, but also long term solutions to their financial problems
If we can help you or someone you know, please feel free to contact us.