Medical debt causes a lot of strain on your finances. With the state of healthcare and the new act not being too clear about how certain aspects of medical care will actually work, it is more relevant now than ever before. Here are a few ways in which you can rake up massive medical bills that can leave you in serious debt. According to an article by Investopedia, medical debts are the number one cause of personal bankruptcy. As far as individuals are concerned, medical debts cause 62% of all bankruptcies and 72% of these people had medical insurance. So, just because you have insurance, it does not necessarily mean you will not go bankrupt.
Medical Debt Causes
- The biggest reason people end up owing money to hospitals is because of the way billing is structured. For example, different states charge their patients differently based on just the location and hospital. The most extreme case, as found by nerdwallet, was the treatment for intestinal bleeding, which costs $291,000 in California and $5,400 in Arkansas. So there is no real system in place that manages the billing. Market forces determine price and if you are in an expensive location, your charges are going to be high.
- Unfair billing practices aside, the second most common cause is simply human error. Mistakes in procedures and bills where you are overcharged can lead you to debt. You need to make sure you are absolutely certain about each item on the bill before you pay.
- Credit card payments of medical bills in a pinch can lead you to massive amounts of debt.
- The unreliability of healthcare and the state of insurance in this country is another major factor. You never really know all the terms and conditions of even a comprehensive plan.
The only real option is to look ahead and do your research on how much it costs where. Always consult a bankruptcy lawyer in Dayton OH for professional guidance.