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Health Insurance May not Prevent Medical Related Bankruptcies

A good health plan can prevent financial disaster, but when deductibles are higher than a patient can handle, insured individual may still require a bankruptcy.

Americans look to insurance policies to be there when something unpredictable happens. Whether it’s an oak limb falling through the roof, an expensive car accident, or someone’s health, people assume that having coverage means they don’t have to worry.

However, with rising health care costs and higher health insurance premiums, some people are raising deductibles to unsupportable levels. At some point, a deductible becomes so high that it’s essentially useless.

“Medical expenses have made up a significant number of bankruptcies for almost twenty-five years,” said Tampa bankruptcy attorney, Reginald Osenton of the Olivero Laws. “With more high-  deductibles or employers shifting to higher deductible group health plans to save money, a lot of people with health insurance are still at risk of hitting financial hardship.”

In Florida, employers have access to group health insurance plans that can exceed $15,000. These plans are often paired with low co-pays for common doctor visits, blood tests, ex-rays, and prescriptions. But if something catastrophic takes place, such as a heart attack, the insured patient would still be liable for their deductible of $15,000.

While some employers may provide a menu of plans that their employees can choose from, thus allowing them to decide which plan fits their needs best, other companies have one plan that applies to all their employees. In such cases, the employee is stuck with whatever plan the employer offers, which may not be enough.

“The employee has insurance and now also has a mountain of debt. If they are diagnosed with something that is recurring, they could have to meet a high deductible year after year. Over time, that could lead to unsustainable medical payments that a bankruptcy could alleviate,” said Tampa bankruptcy lawyer, Osenton.

To learn more visit, http://www.brandonlawoffice.com.

Posted on Monday, July 2nd, 2012 at 5:45 pm under News and Press.
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