As a previous post on this blog pointed out, medical expenses can lead to serious financial challenges. Some people who face a mountain of medical debt may consider filing for bankruptcy in order to regain financial control. The fear of medical debt and financial problems should not deter people in New Jersey from getting the medical care they need.
As previously discussed in this blog, medical debt can cause huge burdens on individuals in New Jersey and elsewhere. When medical expenses add up and individuals or families are unable to timely pay their medical bills, they could encounter serious financial problems. Unlike other financial issues such as credit card debt, medical debt is not caused by unwise monetary choices but rather it often occurs because of unforeseen circumstances.
Are you saddled with medical debt and feeling that there is no way out? If you are, then bankruptcy is an option that you might want to consider.
People throughout New Jersey have probably seen reports that medical debt is the leading cause of bankruptcy in the United States. In fact, the Federal Reserve reported that last year two out of every five Americans have received a lower credit score because of unpaid medical bills, and nearly one out of every six credit reports lists a medical collection debt.
When an individual becomes suddenly and seriously ill or injured, chances are that medical insurance will not cover the full cost of diagnosis and treatment. In fact, even Americans with excellent medical coverage often struggle mightily with medical bills in the wake of an unexpected severe injury or illness. As a result, a staggering number of Americans cannot pay their medical bills in full, on time.
Both the media specifically and the American public generally have recently become increasingly insistent that Congress act to address the issue of overwhelming medical debt. It is now a well-known fact that the majority of personal bankruptcies filed in the U.S. today result primarily from overly burdensome medical bills. Certain members of Congress have vowed to address this issue comprehensively. As a response to this commitment, the Healthcare Financial Management Association (HFMA) is trying to stay ahead of the curve.
A recurring issue our New Jersey injury lawyers have noticed involves valuing Medicare and Medicaid (collectively referred to as Medicare) liens. Failure to identify and satisfy these liens in your personal injury lawsuit could wipe out or greatly reduce the money that you recover.
High Medical Bills & Bankruptcy
Overwhelming medical debt is one of the leading causes of bankruptcy. The federal health insurance reform law - now before the U.S. Supreme Court - has not changed this fundamental fact.
New Jersey bankruptcy lawyers remain concerned about the impact of large medical bills on ordinary families. Problems in paying these bills do not only happen to people without health insurance. Even those with insurance can find themselves facing major challenges.
For years, medical bills have been a major cause of bankruptcy. Federal health insurance reform was supposed to alleviate that problem. But nearly two years after Congress passed the reform law, the problem of medical debt remains acute for many people in New Jersey and across the country.
As a result, many Americans have been forced to put their medical bills on credit cards. Putting the bills on plastic, however, only postpones the problem of how to pay for them. It doesn't solve the problem.