Reasons For People Getting More And More Entangled In Medical Debt
Category : Health
Healthcare expense is on the rise every day. With the advent of newer and most developed methodologies in treatment procedures, people find it very difficult to cope up with the rising medical bills. Add to it the ever rising prices of medicines and after care process, makes it all the more difficult to manage debt properly and efficiently. This results in health care becoming the number one reason for personal bankruptcy. It is more difficult to manage medical debt than any other debts including credit cards.
The Rider Effect
It is true that most of the people are covered by medical insurance. But there is a catch in it. Medical insurance policies have several dos and don’ts, rules and regulations, terms and condition attached to it. There are specific ailments which are not covered under medical insurance. These ailments are often more costly than those covered in an insurance. Moreover, their tie ups with medical institutions also become a factor while claiming for reimbursements. If the hospital you were treated in is not a member mentioned in the list of tie ups, then you are in a dire situation. Remembering and following all these during an ailment is not easy.
Hidden Costs In Bill
A common term in any insurance is ‘network’. You can click here to know about their network. If everything is well within the network, then you are safe to get the reimbursement. But there are medical centers which are within their network who attach some costs which are not covered by the medical insurance. For example, medical insurance may cover costs for hospital charge, anesthesiologist bills, and orthopedist charges but may not include the out of the network doctor whom the hospital called for treating you at the last minute. Such practices lead to rise in medical bills and debt woes.
Medical Bills Collection
Collection of medical bills has become more difficult in recent years. It is the number one cause for personal bankruptcy. Reports and studies show that people pay around there times more in medical bills as compared with all their bank debts and credit card loans all combined together. As such collections in medical bills are very poor. Reports also suggest the reason for such poor collection. More than three-fifth of the people, who have undergone medical treatment of some kind or the other, received a medical bill which was far more than what they expected. Out of these unexpected bills, more than half of the bills were found to be higher due to erroneous bills.
Research In Advance
Some hospitals charge different amounts for same procedures from different people. There is a practice of including charges for treatments which have not been done and tests which has never been conducted or was unnecessary. All these result in inflated medical bills. The best way to avoid such unexpected medical bills is by doing some homework and research while getting admitted for a treatment in a hospital. It is for your benefit that you check out all the charges and treatment fees well in advance to get some relief from the debt strain.