The health care system in the U.S. depends on most people having health insurance of some kind. Despite this, millions of people still find themselves in debt after receiving medical treatment.
Why does this happen? When it does, can it lead to bankruptcy?
Out-of-pocket expenses
Many insurance plans require high deductibles, copays and coinsurance. A deductible is the amount you must pay before insurance covers expenses. Some plans have deductibles of several thousand dollars, leaving patients to cover a large portion of their bills. Even with insurance, the cost of hospital stays, surgeries and treatments can be overwhelming.
Unexpected medical incidents
Medical treatment often arises from unexpected events like accidents. You may have no option but to seek treatment from an out-of-network provider, particularly if it is a matter of life and death. This means that you will likely have charges that your insurance won’t cover. Emergency treatment costs may also be much more expensive than those of your usual medical provider.
Long-term treatment
Insurance only goes so far. Patients with chronic illnesses like diabetes, heart disease and cancer may have ongoing medical expenses. Scans, medications and special treatments can all add up over time. Your insurance may only cover the initial costs. Out-of-pocket expenses due to long-term medical treatments are one of the leading causes of financial hardship and bankruptcy.
It is essential to find out exactly what your insurance covers. Many Americans find themselves in financial trouble due to being underinsured. You shouldn’t have to avoid the medical treatment you need because of fear of debts.
If you are in debt because of medical expenses, options are available. The starting point of getting your finances back on track is to seek legal guidance.
