Medical debt is one of the top reasons why Americans file for bankruptcy every year. Even a single procedure could leave people with debt that they can never afford to pay off. Someone who has accumulated hundreds of thousands of dollars of medical bills may feel they have no other choice.
But there are those who say that Americans should never find themselves in this position. After all, if they have health insurance, all they have to do is meet their deductible. The insurance policy should cover the rest. Even if they have a relatively high deductible, like $5,000, they should never end up facing $1 million in debt. Why would this happen to people with insurance?
What type of care is in your network?
The problem is that different insurance providers have different relationships with hospitals and care providers. Some of them are considered to be “in-network,” and the insurance company will cover those costs. But if you use a care provider that is “out-of-network,” even if you don’t know it at the time, then the insurance company may refuse to pay. Therefore, you could have terrific insurance and still find yourself facing overwhelming debt.
A big part of the issue here is that many people seeking medical care are in an emergency situation. Maybe you just suffered life-threatening injuries in a car accident or a fall. Are you going to take the time to read your insurance policy and see which hospital is in your network, or are you just going to get the quickest medical treatment you can?
Thankfully, bankruptcy can help to eliminate some of this debt. Just be sure you know what legal tools are at your disposal.