medical debt Archives - Page 5 of 10

Is It Ever Too Late to Negotiate a Medical Bill?

Posted on July 3, 2018by Admin

Medical debt continues to be a large portion of debt collection proceedings, but many individuals facing large amounts of medical debt may not believe they have rights when it comes to negotiating the bill. For this reason, these individuals may delay contacting the provider to see if the bill can be reduced or if they could be placed on an affordable repayment plan. However, even if the person owing the medical debt waits months or even years to try to make good on the debt, it is usually never too late to negotiate a medical bill.

Properly Reviewing the Bill

Before negotiating a payment schedule or amount, it is always wise to carefully review the billing statement sent to the patient. The provider needs to properly bill for all services provided within a reasonable amount of time, and not doing this can often be seen as a breach of contract. In addition, it should never be assumed that all of the items listed in the bill are correct. It is recommended that the patient review what is listed, check with his or her calendar to make sure that they line up, and if they do not, bring this discrepancy to the attention of the provider. These corrections can be made even after a period of time passes and the bill has remained unpaid.

Negotiating Past-Due Medical Bills and Bankruptcy

It is possible to negotiate a medical bill, even if it is past due. At the end of the day, most of the medical service providers want to receive some type of payment, even if it is a lower amount.

While the company is within its rights to not negotiate on a bill that is past due, it is usually in the best interest of the company to take a reduced payment, than no payment at all. Medical debt is normally classified as an unsecured debt in a bankruptcy case meaning it is the debt that is discharged at the close of the case. Therefore, it is highly possible the medical company will walk away without receiving any payment if the individual pursues a Chapter 7 bankruptcy case.

Request Financial Assistance with Medical Debt

Medical providers will often offer financial assistance for individuals who are not able to pay for their medical bills. The company will not become aware of this issue if the consumer simply leaves the bill unpaid. It often helps to reach out and be screened for other programs, including financial assistance or state aid. The assistance can make it possible for the individual to pay off these debts in a manner that is much more realistic for the patient.

Speak with a Consumer or Bankruptcy Law Attorney

Depending on how much time has passed, it is recommended that the individual contact a consumer bankruptcy attorney to see if the statute of limitations has passed for these debts. Every state has a statute of limitations which controls the time period a creditor has to collect on a debt. Florida’s statute of limitations for medical debt is five years. However, if the patient negotiates and begins paying on the debt that falls out of this five-year period, this may revive the statute of limitations and then leave the person open to a lawsuit for the balance of the debt if he or she fails to continue paying. Therefore, it helps to speak first with an attorney regarding the debt before making any other decisions.

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Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Cancer Patients Twice As Likely to File for Bankruptcy

Posted on May 24, 2018by Admin

A recent study reveals the devastating financial toll a cancer diagnosis can bring. Even for those with health insurance, the consequences can be financially devastating. The ongoing treatments can quickly deplete savings accounts and rack up credit card debt, eventually making it difficult to cover basic living expenses.

Cancer has always been an expensive diagnosis to treat, but recently several factors have made the costs more intense, prompting more patients to cut back on their medications, even delay treatment. Insurance companies are tightening prescription drug coverage and raising deductible costs. This means for some, paying thousands of dollars a year for a drug like the leukemia treatment Gleevec, which is a pill that is taken daily, sometimes for the rest of a person’s life.

The Affordable Care Act sets limits as to how much people can spend on healthcare each year. Cancer treatments often extend beyond a year and coverage does not always apply to the increasingly narrow network of doctors and hospitals that are considered ‘in-network.’

Duke Cancer Institute oncologist, Dr. Yousuf Zafar, who also studies financial distress among cancer patients, surveyed 300 adult, insured patients at the cancer institute. Nearly 40 percent reported a higher-than-expected financial burden, while 16 percent dealt with what he called ‘overwhelming financial distress.’

More than a quarter of that patient population said they did not take their medicines as prescribed, skipped doses and took smaller amounts than prescribed to save on costs. Some did not even get their prescriptions filled.

Additional research found that cancer patients are more than twice as likely as those without the diagnosis to file for bankruptcy.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

5 Alternatives to Charging Your Medical Bills

Posted on April 13, 2018by Admin

If you are like many individuals today facing serious medical bills, it is important to know that you have options. The rising cost of healthcare, combined with the growing number of Americans without adequate health insurance has led many people to file for Chapter 7 bankruptcy. In fact, medical debt is the No. 1 reason people file for bankruptcy in the U.S. In 2014 alone, an estimated 40% of Americans accumulated medical debt resulting from a health issue. Instead of putting medical expenses on your credit cards or worse signing up for a medical credit card, here are some alternatives that can help you stay out of medical debt.

Enroll in a payment plan. Certain hospitals and doctor’s offices offer payment plans for low-income patients. This will allow you to work out a payment plan directly with the healthcare provider, pay your bill overtime and avoid interest charges.
Ask about charitable funds. If your household income is low enough, you may qualify to have your medical bill completely dismissed. Some hospitals have money set aside to pay for treatment of patients who cannot afford to pay their bill. This is especially common in emergency health situations. However, be warned the paperwork and forms involved is extensive but is worth it in the end.
Negotiate a lower amount. Depending on the circumstances, you may be able to negotiate a lower bill. It never hurts to ask. In some cases, hospitals may agree to settle the debt for less than you owe.
Consider taking out a personal loan. If you have exhausted your other options and still need help paying your bill, consider taking out a personal loan rather than using credit cards. If you have good credit and a stable income, you could qualify for a loan with an interest rate as low as 5 percent.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Nearly 1 in 5 Americans Have Substantial Medical Debt

Posted on March 13, 2018by Admin

Medical debt is a leading cause of personal bankruptcy in the United States. Even if you recover from the illness, the medical debt can remain. This can be made even worse by constant calls from debt collectors. If you are struggling with medical debt, you are not alone. Nearly one in five Americans has delinquent medical debt on their credit reports.

Many times this medical debt can be bought and sold for pennies on the dollar. For example, a collection agency can spend ten dollars to purchase $1,000 worth of debt. Yet, the collectors will still attempt to get the full amount from people who owe the debt.

You may be tempted to ignore a medical debt lawsuit and hope it goes away, but this is one of the worst things you can do because the debt collector will automatically win by default. There are steps you can take if you are facing a medical debt lawsuit.

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Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

Top 10 Reasons People File for Bankruptcy

Posted on February 17, 2018by Admin

While it is commonly assumed that people who file for bankruptcy cannot resist the temptation of using credit cards or are self-proclaimed shopaholics, most people go bankrupt for other reasons. Here are the most common reasons people file for bankruptcy.

Medical debt. Medical expenses account for approximately 62 percent of personal bankruptcy filings in the U.S., according to a recent Harvard University study. And interestingly enough, the study revealed that 72 percent of those who filed for bankruptcy due to their medical bills had some form of health insurance.
Reduced income. Companies are cutting back on expenses and for many employees that means pay cuts. Less income, combined with an unexpected expense can end in bankruptcy.
Job loss. The sudden loss of a job can quickly deplete ones savings. Approximately 62% of Americans have less than $1,000 in savings and 21% live month-to-month.
Credit card debt. This is not always the result of irresponsible spending, but can accumulate due to an unexpected medical expense, illness or job loss.
Divorce. This can mean a significant loss of income and assets for both partners. It can also mean taking on a portion of your partner’s debt if you co-signed on a loan during the marriage.
Unexpected expenses. Emergencies can happen to any one of us, whether your vehicle breaks down, you suffer a debilitating illness or a catastrophic storm damages your home—these events can deplete savings quickly.
Student loans. Even though these are difficult to discharge in bankruptcy, statistics show that student loans account for at least one percent of all U.S. bankruptcy filings, which translates to approximately 15,000 bankruptcies a year.
Utility payments. For many homeowners, the rising costs of utilities- such as heating, air conditioning and electricity- can quickly add up and pave the way to bankruptcy.
Foreclosure. A number of people file for bankruptcy in an effort to save their homes from foreclosure.
Money mismanagement. Money management has become more difficult, thanks in part to inflation. A combination of poor spending habits and incorrect budgeting can quickly spiral into debt.

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If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Millennials Slower to Pay Down Medical Debt

Posted on February 14, 2018by Admin

A recent study by TransUnion revealed that millennials pay medical expenses at a lower rate than Gen X or baby boomers. The study did a comparison of credit data and it revealed five key findings.

Millennials use fewer credit cards than Gen X consumers. In fact, their use of private label cards is 23 percent lower than Gen X consumers, while their usage of bankcards is 22 percent lower.
Millennials prefer to make every day purchases using cash and debit cards, according to TransUnion.
When it comes to credit cards, subprime millennials carry a serious delinquency rate of 23 percent, which is lower than the Gen X rate of 28 percent.
Millennials tend to pay medical bills at a slower pace compared to other generations, according to TransUnion. The study found 74 percent of millennials did not pay their medical bills in full in 2016, a 6 percent increase from 2015. That compares to 68 percent for Gen X consumers and 60 percent for baby boomers.
Millennials’ slower rate of paying medical bills is occurring in a healthcare environment where patients are taking on more financial responsibility for their care. The study found healthcare provider revenue collected directly from patients increased from less than 10 percent to more than 30 percent over the last 10 years.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

The Best Ways to Deal with Out-of-Pocket Medical Expenses

Posted on January 19, 2018by Admin

Americans spent on average $1,054 in out-of-pocket medical expenses, according to the most recent numbers provided by Peterson-Kaiser. The findings also revealed that 27 million Americans are paying their medical bills with credit cards.

What is interesting about the findings is the people who are falling into medical debt are not the uninsured, it is the people with health insurance. Medical debt affects those making less than $10,000 a year to those making in excess of $100,000 a year. Accidents, illness, even pregnancy can generate unexpected medical expenses. Some patients are faced with tens of thousands of dollars in medical debt. For others, a few thousand dollars can prove to be unaffordable when money is already tight.

Here are some ways to deal with unexpected medical debt:

Set up a payment plan. Avoid putting medical expenses on a credit card. More than half of adults over the age of 50 put medical bills on their credit cards, according to a AARP. Request an affordable payment plan from your medical provider, first. See if the hospital or medical provider will accept monthly payments, free of interest.
Scrutinize the bill. Medical bills can be complicated and sometimes include errors. In fact, a recent study found that 49 percent of Medicare medical bills contain errors or unnecessary charges. When you receive a bill for a procedure, hospitalization or nursing care, take time to review it for accuracy. If you received only a total due, request an itemized list of services provided. Request a copy of benefits from your insurance company and confirm they have covered everything promised in your plan.
Open a health savings account (HSA). These accounts are typically only allowed with high-deductible healthcare plans. Putting money into a HSA will give you a current tax benefit. The money will earn interest tax free either as an investment or as a simple savings account. You can then spend it on deductibles and additional medical expenses tax free.

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Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney who can advise you of all of your options. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Medical Credit Cards Leaving Patients with Aches and Pains

Posted on January 18, 2018by Admin

Long after the procedure is over, patients are still suffering with pain. Not from the operation, but from the card they used to pay for the operation. Medical credit cards are offered at the doctor’s office to pay for procedures, patients otherwise cannot afford at the time. This type of credit seems like a quick fix for pricey procedures not covered by insurance.

However, according to a recent survey by the Kaiser Family Foundation, nearly a third of Americans report trouble paying their medical bills and many have taken on credit card debt to pay the expenses. Medical debt is the No. 1 reason Americans file for bankruptcy.

One of the biggest dangers of medical credit cards are the misconceptions associated with them. A number of patients think they are setting up an installment plan with the doctor’s office. Many do not understand they have opened up a new line of credit with sky-high interest rates and strict penalties for even a single missed payment.

Most of these cards feature a “zero interest” promotional period for up to 18 months. But then the interest rate can jump to 25 percent or higher. Some consumers never received a copy of the credit card terms and had to rely on explanations from medical staffers who had little training on the card details, in cases cited by U.S. authorities.

Another potential drawback is something called deferred interest. That means if a patient does not pay off the entire balance during the “interest-free” period, they can be retroactively charged for interest dating back to when they first signed up.

Before you sign up for a medical credit card, we advise that you research other options, first. Medically necessary procedures may be available at a discounted rate or even for free at certain hospitals that provide some level of charitable care. If it is not medically necessary, consider waiting until you can afford the procedure. If you must use a credit card to pay for a procedure, use one that has terms and conditions you understand.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Seniors and Bankruptcy: The Reasons Older Americans Are Filing

Posted on November 28, 2017by Admin

Medical debt is the No. 1 cause of personal bankruptcy filings in the United States and a key reason more seniors are filing for bankruptcy. Another reason for the uptick in bankruptcy filings among Americans 50 and older is the rising cost of healthcare. We recently did a posting on Tips for Seniors to Avoid Medical Debt. The 2005 Bankruptcy Reform Act made it more difficult for some consumers to qualify for bankruptcy, but it did not change the number of people who had more debt than they could afford to pay.

Making matters worse for older Americans are the collection practices of unscrupulous debt collectors. A recent report from the federal Consumer Financial Protection Bureau found that debt collection was the most-complained about product or service for consumers over 62.

Bankruptcy brings with it emotional relief and getting their case filed and debts discharged relieves so much stress for our clients. Seniors can protect assets through bankruptcy. Social security, 401(k)’s, pensions, qualified profit-sharing plans, and individual retirement accounts worth up to $1.245 million are all exempt from creditors during bankruptcy. This means that retirement income and savings are out of reach and protected under federal law. Protecting equity, which is the value of a property, minus the amount owed, is important for seniors. Using a homestead exemption, designed to protect the equity of a main residence in a bankruptcy, will usually keep retirees from losing their homes. Florida homeowners can take advantage of the fact that Florida does not have a limit on the equity that is exempt.

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Tips for Seniors to Avoid Medical Debt

Posted on November 6, 2017by Admin

Open enrollment began November 1, 2017 for health insurance plans through the Affordable Care Act. On October 15, open enrollment began for Medicare recipients. For many seniors, Medicare enrollment is a complex process that does not always cover all medical bills and expenses. As a result, some seniors are left with thousands of dollars in medical debt. Here are some ways seniors can stay one step ahead and avoid medical debt:

Set savings aside to cover unexpected medical expenses. A recent analysis found couples may need as much as $350,000 for medical bills post retirement. Factor this amount in when saving for retirement.

Understand Medicare options and costs. Remember to sign up for Medicare at the right time. Most people are eligible to enroll in Medicare beginning three months before their 65th birthday. Enrollment continues until three months after they turn 65. You can choose standard Medicare or a Medicare Advantage plan. The second option offers lower out-of-pocket costs, but a higher monthly premium, for coverage through an HMO or PPO.

Gather all personal information and keep it organized. Have this information readily available so a loved one or caregiver can help manage your healthcare if you are hospitalized or unable to do so. This should include a daily list of medications, medical providers, your medical history and medical and legal documents such as advance medical directive and a will. Here is a checklist to help manage your personal medical information.

Review medical bills carefully. A recent study found that 49 percent of Medicare medical bills contain errors or unnecessary charges. When you receive a bill for a procedure, hospitalization or nursing care, take time to review it for accuracy. If you received only a total due, request an itemized list of services provided.

Avoid putting medical expenses on a credit card. More than half of adults over the age of 50 put medical bills on their credit cards, according to a recent survey by AARP. Request an affordable payment plan from your medical provider.