Even a minor procedure at the hospital could cost tens of thousands of dollars. If you suffer serious injuries or have to spend an extended amount of time in the hospital, you could be looking at hundreds of thousands or even millions of dollars in debt. For many people, a major medical event suddenly gives them far more debt than they can ever pay off on their own, so they end up filing for bankruptcy.
You have always wanted to avoid these financial troubles, so you took proactive steps and purchased an excellent health insurance policy. Or perhaps you were automatically given access to health insurance as part of your benefits from your job. This way, the health insurance covers all the costs after you simply pay your deductible. Shouldn’t this prevent you from facing bankruptcy?
The services you receive
It can help, but it is important to know that health insurance does not always stop bankruptcy from occurring, and it does not always mean that your debts will be covered. A lot of it depends on the services you receive and where you get them.
The thing to remember is that there are both in-network and out-of-network services, which are pre-identified by your insurance carrier. If you go to the correct hospital and receive care from doctors or nurses who are in your network, the cost should be covered. But if you go to an out-of-network facility or even just receive care from a physician who is not in your network, then the insurance company may deny your claim on those grounds. They will not pay, meaning the debt remains with you, and you may have to consider bankruptcy as an option to resolve it.
Medical debt is one of the top reasons for bankruptcy, and this shows why it is so common and why it is important to understand all of your legal options.