U.S. healthcare operates on an insurance basis. While this means that many procedures are covered, not all insurance policies are equal and many people do not have adequate coverage.
Medical expenses are one of the leading causes of bankruptcy. When an individual is faced with the choice of not having the medical treatment they need, or getting into debt, it’s understandable that they choose the latter.
What are some of the top causes of medical debt in the U.S.?
1. Plans with high deductibles
The cost of insurance is a worry for many people. One way to reduce monthly costs is to have a High-Deductible Health Plan (HDHP). While this has the benefit of reducing monthly costs, there are potential drawbacks.
Trouble can arise if the individual has not been able to budget in the event of medical expenses. With these types of plans, insurance does not kick in until the minimum agreed deductible has been paid upfront. When people don’t have this upfront amount, they are often left with little choice but to take out loans and rack up significant medical debts.
2. Chronic health conditions
All insurance policies have limits, and medical insurance is no exception. When it comes to chronic health conditions, this is of particular concern. Coverage may only stretch so far, and someone who has to manage a health condition for several months, years, or even a lifetime, could end up significantly out of pocket.
These are just two situations that could land people in medical debt. If you’re struggling financially, then it’s best to seek legal guidance as soon as possible.