Bankruptcy, Medical Bills and Reform


According to CNN Health 62.1 percent of bankruptcies were in some way medically related because the filing party had more than $5,000.00 or ten percent (10%) of their pre-tax income in medical bills, took out a mortgage to pay for medical bills, or lost significant income due to a medical condition or illness.  On average, medically bankrupt families had $17,943.00 in out-of-pocket medical expenses;for those who did not have insurance the out of pocket medical expense was $26,971.00.  Overall, three -quarters of medically bankrupt families had health insurance, but gaps in coverage, co-pays and deductibles led to a bankruptcy filing.  The bankruptcies saved hundreds of dollars per month and thousands per year for the families who could not afford to pay their medical bills. 

On September 23, 2010 the initial changes of “The Affordable Care Act” went into effect in effort to save individuals and families medical expenses.  The initial changes that went into effect are as follows:

1. Insurance companies will no longer be able to deny children coverage for pre-existing conditions.

2. Children of parents with insurance will be allowed to remain covered under those policies until the age of 26.

3. Insurance companies will be forbidden from terminating coverage for any reason than consumer fraud.

4. Insurance companies will no longer be able to cap the benefits and treatment a person can receive.

5. Insurance companies can no longer charge for “preventive services.”

6. High risk pools are mandated to cover those who have been denied coverage because of pre-existing conditions.

If there are any general questions or topics you would like to read about relating to bankruptcy law in the Philadelphia, Pennsylvania region, you may contact the Philadelphia Bankruptcy Lawyers at Sadek Law Offices, LLC at 215-545-0008  or toll free at (877) 4-LAW-411 or email brad@sadek-cooper-site. Thank you.

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