Is Filing Medical Bankruptcy My Only Choice?

The American Journal of Medicine recently published a study on bankruptcy and medical bills. The study’s major points were:
- Approximately 75% of people filing medical bankruptcy are have health care coverage.
- Medical bills are a major factor in over 60% of bankruptcies.
- The majority of people facing bankruptcy and medical bills are middle class individuals who own their homes.

You may wonder how this is possible – don’t we pay for health insurance to prevent filing medical bankruptcy? Unfortunately, the reality is that health insurance just doesn’t cover everything. And if you are suffering from a long term or chronic illness, you may find yourself quickly overwhelmed with medical expenses. There are a couple of reasons for this:
1. A large number of conditions and treatments fall into “coverage gaps.” Additionally, charges like coinsurance fees and copays can quickly add up. Insurance coverage is not all inclusive.
2. Illness may cause loss of income. There are some laws in place to protect your job if you are ill; however, many people still lose income due to illness. Many even lose their job, and then their health plan leading to bankruptcy and medical bills.
Before you consider filing medical bankruptcy, keep in mind that you have some options. Many health care providers and hospitals will consider working with you to get paid. For example, there are payment plans, discounted rates or free care based on income. But if your medical bills have gone to collections and you are being harassed for payment, it may be time to take the next step. A bankruptcy attorney can discuss bankruptcy and medical bills and explain the process of filing medical bankruptcy. They can also help you come up with a plan based on your specific situation.