When you look at some of the top reasons people end up filing for bankruptcy, you will see that medical emergencies are a common issue. Medical debt can be overwhelming. Someone who has an emergency situation and suddenly finds themselves owing $100,000 may feel that they will never have any way to pay it all off, for example.
There are those who will say that the way to avoid this problem is just to have health insurance. Then, if there is an emergency, the health insurance company covers the costs. Bankruptcy is not necessary.
While health insurance can be helpful, it does not always prevent medical debt or a bankruptcy filing.
Out-of-network services
For one thing, many people still have a high deductible. Even if the medical services are covered, they could owe thousands of dollars before they meet the deductible.
But the bigger issue is often when someone receives out-of-network services. The insurance company may refuse to cover the costs if it was not an in-network healthcare provider that they approved in advance.
But an emergency naturally means that a person may not be able to choose any healthcare provider they want. Say that someone is on vacation when their child suffers an injury. They may not have any idea which local hospital is in their insurance network, but they are just focused on getting care for their child.
Your bankruptcy options
Have you found yourself considering bankruptcy because of outstanding medical debt? You are certainly not alone, and it is important to know what legal options you have to build a positive financial future.
