The Finance Factor

Perhaps you are unaware or maybe you have indeed heard the statistic that 50% of all personal bankruptcies are caused due to medical bills. Often, far too often the folks actually had medical insurance, but the co-pays, deductibles or items not covered exceeded the ability of the patient or the patient’s family ability to pay. Most of these medical debtors were not lower class, rather middle class. The upper middle and upper class was able to weather the storm and onslaught of medical bills much easier. This tells us one thing, it tells us that the healthcare system is out of control and completely broken.

Throwing more taxpayer money at universal health care or mandatory health insurance, will only bankrupt employers and cause even more havoc with consumers. Insurance prices will rise, even if the risk is spread out over all citizens. Worse is the problem of what to do with illegal immigrants getting free health care and soaking up services, causing prices for paying customers, clients and patients and insurance rates to go up to cover those losses. Something must be done. Continue reading ‘Medical Bankruptcies Up’ »

Catastrophic illnesses are claimed to have triggered approximately half of all personal bankruptcies in the United States. According to recent findings from a Harvard University study, most people who go bankrupt because of medical problems also have health insurance. Researchers found that many private insurance plans that offer limited catastrophic coverage were inadequate and offer little financial security for less severe illnesses.

Questionnaires were distributed to 1,771 bankruptcy filers in 2001 in California, Illinois, Pennsylvania, Tennessee and Texas. According the study, a total of 1.46 million personal bankruptcies were filed in the United States during 2001.

Nearly 1,000 individuals questioned gave detailed interviews about their financial and medical circumstances. Sickness and rising medical bills were cited as the cause, in part, for 46.2 percent of the personal bankruptcies. The numbers grew to 54.5 percent when an additional three other factors were included as triggers for medical-related bankruptcies: birth, death and gambling addiction. The study assessed that medical bankruptcies currently affect approximately 2 million Americans annually, including 700,000 children. Continue reading ‘Medical Bankruptcies – The Growing Reality’ »

Medical bills are the leading cause of bankruptcy, according to a Harvard University study, which also showed that more than 75% of those who declared bankruptcy because of mounting medical bills had health insurance at the start of their illness.

These days, the word “insurance” may be a misnomer. Health care coverage no longer insures that the bulk of your medical costs will be paid. The safety net that medical insurance provided in the past has become riddled with holes so large that many people are falling through, leaving them nearly as vulnerable as those without insurance. These people are considered underinsured.

Two reasons for the recent upsurge of people who are worrying about health care costs and struggling to pay their premiums, even if they are employed and have health benefits through work or are eligible Medicare are below. Continue reading ‘Health Insurance Bankruptcy – A Common Dilemma’ »

The health care system in the United States is broken. About half of all bankruptcies are declared because of insurmountable medical bills, and of that huge number, about 75% of them had health insurance when the problems began.

Medical bankruptcy is not a problem of the poor or the upper middle or upper class. It is a problem for the middle class and the lower middle class – people who work hard, do their best to pay their bills, and raise their families.

All it takes is one major illness or accident and even if they have health insurance, they can owe many thousands of dollars in medical bills. If the accident or illness causes them to lose their job, and thus their health care insurance, their medical bills can run into hundreds of thousands of dollars. Continue reading ‘A Complete Guide to Medical Bankruptcy’ »

My husband had sudden cardiac arrest a few months ago and luckily I performed CPR on him that inevitably saved his life. Fortunately, I have written many books about saving money in healthcare and this was no different. Many people get “lost in the emotion” while the bills pile up. I put my rules to practice once again, and proved that you can save, even in an emergency situation of a loved one.

1. Make sure you have a Power of Attorney: This is the designation of someone to act as the sole decision maker in your absence. In my husband’s case, he was unable to make any decisions while he was unconscious for three days and could not deal with the stress of bills during his recovery. By having a Power of Attorney, I was able to make medical decisions on behalf of my husband as well as get copies of our bills to review and question all mistakes in a timely matter…and there were plenty of mistakes! This is not automatic when you are married!!!! Be sure to keep a copy at your local hospitals, with your insurance company, as well as at your home and office. You may also opt to file an Advanced Directive which contains both a Power of Attorney for health care and a Living Will. You can get these form free online and have them notarized at you bank. Some health insurance companies have their own forms that you can simply sign and fax in. Continue reading ‘How I Saved My Husband’s Life and Our Bank Account’ »

Medical bankruptcy is one of the most misunderstood terms in medical finance. There is actually no “medical bankruptcy”. That being said, medical problems have consistently been one the 3 leading causes of bankruptcy in the United States.

Although there is technically no medical bankruptcy a medical problem can certainly cause you to find yourself in bankruptcy court. Medical problems can be a double whammy; they reduce or eliminate your income and cause you to incur massive debt. In many cases you have virtually no chance of ever repaying this debt, it’s just too large. Many people find themselves in a position of losing their homes and other valuable possessions in an attempt to repay their huge medical bills. Continue reading ‘Can Medical Bankruptcy Shield Your Assets? What to Do If You Need Help Now’ »

They say that the average US Citizen only has enough money in savings for an average of 4-5 weeks with no income. If the money stops coming in they are financially bankrupt. That includes the balances on their credit cards and any home equity lines of credit, which these days are almost non-existent. Just imagine losing your job at a time like this, and many Americans are due to hard economic times and large corporations trimming jobs and announcing huge lay-offs.

Now suppose you get sick or a family member has a huge problem, one which either your insurance will not cover or you never had medical insurance in the first place. You will not be able to pay the medical bills and you will be forced into bankruptcy. The health care system in America is broken and the prices have become so high that it’s hardly viable. In fact, more and more people are filing bankruptcy due to medical bills that they cannot pay. Continue reading ‘Medical Bankruptcies Are Increasing at an Alarming Rate in America’ »

When medical bankruptcy seems like the only remaining options for all of your medical bills, make sure you didn’t overlook the medical grants that may be available to you. When a serious medical condition arises, even those with proper insurance can find themselves in hundreds of thousands of dollars in debt. This can not only deplete a life savings and destroy your credit score, but it will create a level of unnecessary stress that can tear at a family.

Every year millions of people are faced with filing for medical bankruptcy, and billions of dollars is left unpaid to hospitals and medical practitioners. This destroys the individuals finances, hurts the medical community, and can damage the economy as a whole. Continue reading ‘Fast Medical Bankruptcy Alternative – Medical Grants’ »