Medical Insurance does not function to completely protect you from what might be characterized as “outrageous” medical bills. However, holding such an insurance policy is an important step that signals your willingness to pay. That insurance policy, no matter how much of your bill it may or may not cover, serves to show that you are serious about maintaining good relationships with everyone in the “supply chain” of your healthcare. This can prevent aggressive collection actions from getting started. If you are already in financial trouble, this boon can actually help you avoid bankruptcy, even though it will not reduce your healthcare bills.
In today’s difficult economic times, the rate of bankruptcy for Americans is growing steadily every day. Many of these bankruptcies are related to non-healthcare issues, such as mortgage problems and unemployment. However, Medical Insurance can actually help you prevent a serious problem with your finances. That’s because health insurance is one of the only things that stands between you and the complete dismantling of your financial world through collection actions taken on medical bills you cannot afford to pay. Since there is little to control the prices of medical procedures, insurance is a vital tool to assist your economic self-protection.
Aside from mortgage issues and those brought on by sudden, long-term unemployment, healthcare costs are among the top causes of bankruptcy in America today. Although Medical Insurance is becoming easier for Americans to acquire, this effort is not reducing the cost of medical drugs, procedures, and devices — all of which tend to be extremely expensive. In many cases, the best outcome that patients can hope for is that their insurance will absorb some of a procedure’s cost, while the fact they are responsible and diligent with their insurance helps them to get a proper payment plan that they can afford.
So, unfortunately, the answer to the above question is “yes” — not having a Medical Insurance policy can actually lead to bankruptcy. This is a problem faced not only by mature patients, but also by others who find themselves temporarily disabled due to illness, or battling a chronic condition that they can only treat with expensive medical processes. Although bankruptcy is something that many people can recover from in the long term, it is advisable to avoid this process if at all possible. Health insurance serves as one preventative that can save money in the long run if instituted early.