One of the most common causes of bankruptcy is medical costs. In fact, 62% of bankruptcies are the result of health care expenses. Even those who have health insurance are affected, due to crushing co-payments and co-insurance percentages! That’s why it’s essential to pick the right health insurance plan for your needs, with the correct level of benefits.
Think twice before selecting a health savings account. High-deductible HSA plans are appealing due to lower premiums, but studies have found that people with higher deductibles are more susceptible to bankruptcy.
Whatever health coverage you choose, keep a separate savings account with money in the bank to pay for unexpected emergencies or other medical expenses.
Check with your health insurer to confirm that they actually paid the providers, even if they are responsible for the billing.
Ask for a copy of your bill, and look for mix-ups that could cause you to owe more than you expected.
If at all possible, avoid opening credit card accounts to pay for health care, even if the provider offers it to you. Credit card debt is harder to eliminate than medical debt, comes with far higher interest rates, and leaves a black mark on your record.
Don’t take out a home equity loan, either. Not only is it also harder to eliminate through bankruptcy, but it could also lead to you losing your home.
Try to negotiate a payment plan with the hospital or doctor’s office, even if you have health insurance. They may offer more favorable terms.
What does the Healthcare Bill Change Now?
The healthcare bill has passed after more than a year of debate and negotiations. Some of the provisions will go into affect immediately. So what does the passage mean for both uninsured and insured Americans? Here is a look at some of the major changes.
Seniors will get help paying for prescription drugs.
Individuals with income of $200,000 or more and families with a combined income of $250,000 or higher will see an increase in taxes.
If you already have health coverage, within six months, the plans will have to stop setting lifetime limits on coverage and canceling policy holders who get sick.
Insurers will also have to allow children to stay on their parents’ policies through age 26 and cover children with pre-existing conditions, but can still deny adults with medical problems until 2014.
By 2014, most Americans would be required to purchase health insurance or face penalties.
Small businesses and the uninsured would have the option of shopping for coverage in medical insurance exchanges, a marketplace in which people would be able shop for and compare insurance plans. Those exchanges would be implemented in 2014.
The bill greatly expands Medicaid and subsidies to the poor. Insurance companies would not be able to place lifetime caps or deny coverage to patients based on pre-existing conditions.
The healthcare debate has lawmakers at odds, and if you are wondering why Congress can’t seem to get a hold on the issue of medical insurance the simple answer is: it’s not easy. A large part of the healthcare debate is spending, and lawmakers must predict how much money the country’s health system will need in the future.
As said in an article by The New England Journal of Medicine, no one can accurately predict what health care expenditures will be 10 years from now, because they will depend on many factors, every one of which is unpredictable. For instance, what health problems will the country face in 2020? No one knows what the incidence of heart disease, cancer, and other major objects of health care spending will be 10 years from now. The prevalence of obesity may continue to increase or reverse its course. New infectious diseases may appear and become widespread. Equally important, and equally difficult to predict, are advances in medicine, or in economic terms, changes in medical technology. New drugs, new devices, new imaging techniques, and new surgical procedures have had a huge impact on health care expenditures in the past and probably will in the future as well.
And then there is the cost of medical advancements. Some advancements are proven to be cost effective while others are seen as wasteful. But how can Congressional leaders know exactly which interventions to invest in?
Healthcare spending becomes a matter of how much a life is worth. It’s a difficult principle to quantify and even more challenging for lawmakers to govern. So as lawmakers struggle to come to common ground on how to make health insurance more affordable, remember, it’s no easy fix.