It’s very common for people to use medical debt as a reason for filing for bankruptcy. Part of the reason is that medical debt can be incredibly substantial. Even a simple medical procedure could cost tens of thousands or even hundreds of thousands of dollars. Those who have significant injuries, like spinal cord injuries, could be looking at costs in the millions.
For the average person, this is just completely unaffordable. There’s no way that they can pay for the costs after an SCI, but they are still going to get the medical treatment that they need. They have to put their health first and figure out the financial side later. One way to address excessive medical debt is to file for bankruptcy, creating a fresh financial start.
Why doesn’t insurance help?
To avoid this issue, most people carry health insurance. This policy may have a deductible that they still have to meet. But the deductible could be much lower than the medical costs. For example, if you have a deductible of $3,000, most costs after that should be covered by your insurance. Surgery may cost $100,000, but the insurance covers most of it.
This is not a perfect solution, however. Many health insurance companies have treatment plans and agreements with healthcare providers. The insurance only works if you use in-network services. But if you have an emergency and you get treatment from an out-of-network service provider, then your insurance may refuse to pay – even though you purchased the policy.
You can see how quickly medical issues could lead to bankruptcy, so be sure that you also know what legal options you have.