Medical debt is the main reason that people file for bankruptcy. The conventional wisdom that you’ll sometimes hear about affording your medical bills is simply that you needed to buy insurance in the past. The implication is that those who can’t afford their bills must not have had coverage.
But the fact is that this isn’t true at all. Even those who do have insurance often can’t pay their medical bills. There’s a reason that most people cite these when filing for bankruptcy. Why is it unaffordable even with insurance?
How high is your deductible?
First and foremost, people tend to have a deductible that they have to meet on their own before the insurance even kicks in. This could be as low as a few hundred dollars, but it could be as high as a few thousand. If your deductible is $3,000, you must pay all of that upfront — before the insurance starts to cover the other costs.
You got out-of-network care
When you go to the hospital for medical care, you’re supposed to attempt to stay within the network that your insurance provider supports. However, it can be very confusing and nearly impossible to figure out what this is, and not all of the services at the same hospital will technically count as being in the same network. Plus, those who are seeking emergency care usually focus on their health and don’t take the time to think about what network their doctor is in.
If you have overwhelming medical bills, it may be time to consider bankruptcy and other financial options to seek relief.