Health insurance is one of the only ways to make modern medical care accessible. Without insurance, most people can’t afford prescription medication, surgery and other cutting-edge medical treatments.
Unfortunately, the insurance companies do not necessarily act in the best interests of policyholders. Instead, they look for ways to keep their costs low and their profit margins high. Health insurance policies often include terms that pass certain expenses back to policyholders. As those costs accrue, policyholders may end up with insurmountable levels of medical debt.
What do patients have to pay?
Those who haven’t required intensive medical support in recent years may be unaware of the various costs that become their responsibility when they require treatment. For example, people may realize that they have a copay to cover at every appointment or with every new prescription.
However, they may fail to consider the deductible they have to pay before the company starts covering their costs. Deductibles can be as high as $5,000 or $10,000. People have to cover that amount out of pocket every year before their policies provide financial support.
Co-pays are another consideration, but the amount of a co-pay is usually relatively affordable. However, coinsurance rules might be a more serious concern. Coinsurance makes a patient accountable for a specific percentage of their overall care costs.
It’s quite common for insurance providers to require that patients cover 20% of their overall medical bills. For someone who needs surgical care or chemotherapy, 20% of their total cost could be tens of thousands of dollars.
Some policies have higher coinsurance rates for specialized care, such as emergency treatment. Someone who requires immediate care after a stroke or heart attack may have coinsurance rates of 50% or higher if their admission to the hospital begins at the emergency room.
Particularly when combined with lost income because of medical challenges, those patient responsibility costs can create insurmountable financial challenges. Individuals who have recently completed medical treatment may have debts that prevent them from moving on with their lives.
Filing for personal bankruptcy can be a viable solution for those saddled with major medical debts after they overcome a medical challenge. The elimination of unsecured debts can help people avoid collection activities that could compromise their health and endanger their resources.
