Bankruptcy is certainly a complex topic and can happen for numerous reasons. When you look at some of the top things that people cite while filing for bankruptcy, you’ll notice issues like credit card debt, medical debt, job loss and income reduction.
One of these stands out to some consumers: Medical debt. They know that medical care is expensive, of course. But they also have good health insurance. As long as they have insurance, does this mean that they don’t need to worry about healthcare debt? Or could it still push them toward bankruptcy?
Out-of-network services
Unfortunately, even for those with health insurance, medical debt is a constant issue. This is because health insurance providers typically have a network of approved service providers and medical centers.
In other words, as long as you use the correct doctors and facilities, your bills are going to be covered. But if you use out-of-network services, even if you have great health insurance, the insurance company is going to refuse to pay.
This can lead to serious issues when people don’t realize they’re getting out-of-network services. This could happen due to a miscommunication issue, for example. It could also just happen because it’s an emergency. A parent who is seeking life-saving care for their child, for example, isn’t thinking at all about what network the hospital is in. They’re just getting the medical care for their child.
Filing for bankruptcy
When debt becomes overwhelming, bankruptcy is a legal tool that can be used to alleviate that financial pressure. Make sure you know what legal steps to take and what options you have.
