Americans know all about debt. In fact, a fair portion of the country's political discourse revolves around it fairly continuously due to the national preference for credit. That preference is not necessarily a bad thing, and in a healthy economy, debt can even drive growth for a time. When wages stagnate and costs do not, though, debt creates problems because it becomes necessary for short-term functioning, even as it undermines your long-term resources. Health care debt is no exception; in fact, it might actually exemplify this because most people have very little control over the extent of the medical services they will need to remain healthy, so when costs add up, it is easy to wind up in a situation where your medical debt outstrips your income.
Many of those in Salem who have health insurance may be surprised to learn that simply having it does not necessarily guarantee coverage. Insurance claim denials may easily cause worry, given that medical debt is the primary reason behind most personal bankruptcies in the U.S. So what should you do if your medical claim is denied?
Many in Salem may find it difficult to grasp just how great of a crippling effect medical debt can have on one’s finances. They also may fail to realize how pervasive the problem is in the. U.S. According to data shared by The Association of Credit and Collection Professionals, 41 percent of American adults encounter difficulties in affording their medical bills. Some may say that those struggling are likely only doing so because they are uninsured. However, ACA International has information from another national study that shows that only 13.1 percent of participants reported being uninsured.
A common myth that many in Salem may buy into is that only those who cannot manage their money are driven into bankruptcy. The fact is that most personal bankruptcy cases in the U.S. do not involve consumer debt at all. According to the results of a Harvard study shared by the Huffington Post, 62 percent of all bankruptcy cases in America were due to outstanding medical debts. If an accident or illness has left you dealing with a large amount of medical bills, bankruptcy protection may ultimately be your best option. If so, you then need to decide which form will work best for you.
The rising costs of healthcare have left many people in Salem, both insured and uninsured, with little chance to realistically afford their medical bills. If you feel as though you are drowning in medical debt, you may wonder how many others are in your same situation. One way for you to understand the struggle that others have in affording their medical bills in comparison to yours may be to evaluate medical bankruptcy data cross the U.S.
Many healthcare providers in Salem and throughout the rest of the country may worry about getting paid for their services. The Association of Credit and Collection Professionals reports that as recently as 2012, American hospitals provided over $45 billion in care for which they were not compensated. Thus, when you are faced with outstanding medical debt, you may find that your doctor and/or the hospital or clinic where you were treated may be more willing to work with you than you realize.
Many in Salem may believe that the key to avoiding financial scenarios where bankruptcy becomes a debt-relief alternative is simply to avoid debt altogether. However, for many, it is not that simple. The leading cause of personal bankruptcy in the U.S. is medical debt. Just how prevalent is such debt? The Centers for Disease Control and Prevention reports that in 2012, an estimated 21.8 percent of American families had difficulties paying their medical bills, while 36 percent overall faced some form of financial burden related to healthcare.
Unexpected medical expenses can leave almost anyone in Salem facing dire financial straits. Few may comprehend just how costly medical bills can be, and how quickly they can accumulate. What initially starts out as an injury or illness can leave one requiring years of costly medical treatment. In the face of such mounting debt, it is little wonder why medical bills place such a strain on American households. Indeed, The Council for Disability Awareness reports that medical problems were listed as the primary reason behind 62 percent of all bankruptcy filings in 2007.
If you happen to be suffering from seemingly insurmountable medical debt in Salem, you are not alone. In fact, according to data shared by CNBC.com, nearly 2 million people in the U.S. were driven to bankruptcy by medical debt in 2012, placing it atop the list of reasons why Americans seek such protection. Yet if you are like most, it is not as though you are trying to shirk your financial obligations; rather, you may simply not have the resources to fulfill them.
More than a few in Salem have come to us here at the Law Office of Paul Petrillo facing mounting medical debts. If you happen to fall into this group, you may also be wondering how to deal with the confusion caused by medical bills. The process of medical claims payment involves a complex series of steps and requires review by multiple parties. Any breakdown along that chain of events can result in claim denials, late fees being assessed and even accounts being reported to your credit.