medical debt Archives - Page 8 of 10

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The Biggest Threat to your Credit Score

Posted on April 6, 2016by Admin

A recent study from the Consumer Financial Protection Bureau found that 52 percent of debt on credit reports is from medical expenses, with an average balance of $579. Medical debt impacts 43 million Americans, and 15 million of those only had medical debt in collections.

This is important because it points to a few important threats for consumers.

Health insurance is confusing, doctors’ billing practices can be questionable and collection agencies have been known for putting the debt on your credit report before making any effort to collect from you. This means it’s not uncommon for people to see a medical debt end up in collections without ever being alerted of the debt.

Here are some ways to prevent medical bills from going to collections:

Make sure your doctor has your correct address. Take a moment to confirm the information your doctor’s office has on file is correct (i.e. – mailing address, phone number, email, etc.)
Set reminders to follow-up. Do not trust that the doctor’s billing dept. will do their job or have your best interest at heart. Set up reminders on your phone and in your day planner as to when your bill is due.
Understand your insurance. Know your deductible and how much your co-pays should be, so there are no surprises.
Work out a payment plan. Sometimes medical debt goes to collections because the bill is just too much to pay. Instead of ignoring the debt, try to work out a payment plan with your doctor’s office or the hospital, before it goes to collections. Request an itemized copy of the bill and check for any errors. Find out if you qualify for any charitable assistance. This is oftentimes based on income and circumstance.

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, 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, Credit, Debt Relief, Timothy Kingcade Posts

Legislation for Medical Debt Relief Introduced in Senate and House

Posted on March 4, 2016by Admin

Five Democratic Senators recently introduced the Medical Debt Relief Act that would remove medical debts from consumer credit reports that have been paid in full. The purpose of the bill is to prevent medical debt from damaging consumers’ credit scores after the debt has been settled.

The bill would require that medical debts allow for a 180-day waiting period before they are reported on consumers’ credit reports. This would allow time for insurance payments to be applied to outstanding medical bills. It would also require that credit reporting agencies remove previously reported medical collections that have been or are being paid by insurance companies from consumers’ credit reports.

If passed, the bill would ensure consumers are able to find affordable credit after paying off their medical debts. It would also permanently establish the new National Consumer Assistance Plan created in 2015 after a settlement agreement was reached between credit reporting agencies and state attorneys general.

The goal of the agreement is for credit reporting agencies to be able to collect complete and accurate consumer information and provide consumers more transparency and a better experience when interacting with credit bureaus regarding their credit reports.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How to Conquer Your Medical Debt

Posted on March 2, 2016by Admin

Millions of Americans struggle with medical debt. In fact, studies show that between 2005 and 2013, medical debts were the single largest contributor to personal bankruptcy filings in the U.S.

The Consumer Financial Protection Bureau (CFPB) said that half of all overdue debt on credit reports is medical debt; one in five credit reports contain overdue medical debt; and 15 million consumers have only medical debt on their credit reports.

Unfortunately, many Americans do not fully understand their rights and protections when it comes to medical debt. Understanding medical debt collection laws can help you better manage your medical debt.

What to do if your bill contains an error.

Medical debt collection laws vary by state, but in most states healthcare providers and debt collection agencies are allowed to contact you regarding a debt that you owe. However, you are allowed to challenge that debt if you believe it is incorrect. You can also tell the debt collector to stop contacting you. According to Exhale Healthcare Advocates, more than 50 percent of all medical bills contain errors, so it is important to contest your medical bills if you believe there is an error.

In order to challenge your medical bill, you must first ask for an itemization of the bill and request an internal audit. There are websites you can visit that will show you what fair prices for medical services should be, based on your location and zip code, such as www.healthcarebluebook.com. If you feel that your bill contains an error or you have been overcharged for a medical service, you should contact an attorney.

What to do if your insurance company denied your claim.

If your health insurance company has denied your medical claim, you can appeal the company’s denial. Before you do so, it is important that you know and understand the guidelines, including all of the fine print within your insurance policy. Most patients can get the claim denial overturned after one appeal; however, this can be a long drawn out process.

What to do if you are being harassed by a debt collection agency.

It is imperative that you understand your rights under the Fair Debt Collection Practices Act (FDCPA), since medical debts are considered consumer debts. This means all protections of the FDCPA apply to third party debt collectors if your debt is in default. If you feel that your rights have been violated under the FDCPA, you should contact the CFPB and file a complaint.

How to pay down legitimate medical debt.

Do not pay your medical bills before you know how much your insurance company is going to cover.

Never pay more than you owe based on your insurance coverage. For example, if your healthcare provider tries to charge your insurance company $300 for a Band-Aid, and your insurance company only pays $5. The hospital can come after you personally for the rest. This practice is called “balance billing” and is on the rise. Many Floridians are at risk for balance billing and are often unaware of the financial consequences. Individuals who run the greatest risk are those who have health policies from a private company that is not an HMO. Most are PPOs, preferred provider organizations. Those in an HMO would see all their bills covered: ambulance, hospital and doctors. But those who have another type of health insurance could be faced with astronomical medical bills after a trip to the ER or hospital.

If you receive medical bills that you legitimately owe, contact your healthcare provider to work out a monthly payment plan that works with your financial situation.

http://blog.credit.com/2016/02/help-im-in-serious-debt-with-medical-bills-137177/

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Studies Show Cancer Survivors are at a Higher Risk of Filing for Bankruptcy

Posted on January 12, 2016by Admin

A survey of 4,719 cancer survivors, ranging from 18 – 64 years of age, showed that one third of them had gone into debt due to their illness. The study also showed that more than half of the cancer survivors’ debts exceeded $10,000. Dr. Matthew P. Banegas at the Kaiser Permanente Center conducted the survey for Health Research in Portland, Oregon.

Another study showed that three percent of cancer survivors have filed for bankruptcy due to their medical debt. The costs for curing cancer have increased two to three times faster than other healthcare costs. The costs for new cancer therapy ranges on average from $10,000 per month to $60,000 per month.

Health Affairs reported that those who were younger, had lower income and held public health insurance were at a higher risk of filing for bankruptcy.

A separate study conducted by Dr. Yousuf Zafar of the Duke Cancer Institute showed that family members of cancer survivors often had to work longer hours to make up for the loss of income. His study also revealed that one third of those surveyed had to borrow money or incurred debt due to medical bills.

Dr. Banegas said that many of the newer cancer treatments are “coming with a higher price tag.” Although there are many programs geared toward helping aid those who are battling cancer, he went on to say, “Professional societies in oncology are working toward generating this kind of information.”

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Study reveals even those who are Insured can Face Crushing Medical Debt

Posted on January 7, 2016by Admin

According to a new study, the only way to have peace of mind when it comes to having health insurance is: Don’t get sick.

Even though the number of uninsured Americans has dropped an estimated 15 million since 2013, thanks to the Affordable Care Act, it has hardly been a safety net to millions of Americans struggling with medical debt. The new plans offered by Obamacare often require hundreds of thousands of dollars out-of-pocket, not only in the form of higher deductibles- but additional costs, like co-pays. It has caused unimaginable hardship for those living paycheck to paycheck.

Data reflects that roughly 20 percent of people under the age of 65 with health insurance reported having problems paying their medical bills over the last year. By comparison, 53 percent of people without insurance said the same. These financial vulnerabilities reflect the high costs of health care in the U.S. – the most expensive place in the world to get sick.

This shift has happened over time. Since the late 1990’s, insurance plans have been asking customers to pay more of their share of the bill, through rising deductibles and co-pays. The Affordable Care Act, signed by President Obama in 2010, protected many Americans from high health care costs by being more comprehensive, but at the same time it allowed, and even encouraged, an increase in deductibles.

Experts attribute this to “a gradual shift in the norms about the generosity of health insurance.” In more recent years, health plans have come with growing deductibles and a limited network of providers- all provisions that were devised to lower the cost of premiums. These features have made health insurance accessible to a larger share of the population, but in turn, are leaving more insured Americans vulnerable and at-risk.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief

Tips to Avoid Medical Debt- While You Are Still Healthy

Posted on December 22, 2015by Admin

Financial experts are advising Americans to save for a rainy day when it comes to their healthcare costs. The last thing you want to deal with when you are battling a serious illness is financial stress. Consider getting insurance for your credit cards and mortgage. Understand your insurance; know what it covers and what it does not cover.

Prepare a budget while you are still healthy. Know what it costs to run your household and the expenses that are coming out every month. If you spend $1,500 a month on living expenses, experts say you should put six to nine months worth of that money away in the bank.

For example, the treatment for what you have been diagnosed with or a family member has been diagnosed with- you will need to have cash on hand to travel for treatment, get a hotel, see doctors while still covering your monthly bills and expenses.

If you or a family member have been diagnosed with a serious illness, call your creditors and let them know immediately if you are having difficulty paying your bills. There are programs offered that can give you time to make those payments and if you find yourself falling too far behind, reach out to a reputable bankruptcy attorney in your area.

Click here to read more on this story.

If you 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, 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, Credit, Debt Relief, Timothy Kingcade Posts

Three Times Bankruptcy is the Right Decision

Posted on November 17, 2015by Admin

Bankruptcy can have significant consequences to your credit score, but sometimes the hit can be worth it if it means getting out from under a mountain of debt and gaining a fresh financial start. Filing for bankruptcy should not be taken lightly, but if paying down the debt would leave you with no money to put food on the table and pay the mortgage, filing for bankruptcy makes sense.

Here are some additional circumstances when it makes sense to file for bankruptcy.

Your liabilities are more than your assets. Bankruptcy is often the best option when debtors owe so much that their liabilities far outweigh the value of their assets. In such cases, it’s often impossible to ever get caught up.

Negotiations didn’t work. Before filing for bankruptcy, it’s a good idea to try and negotiate with your creditors. There is a possibility they will settle the debt for less money than you owe if you can prove that you are struggling financially. But if your creditors are unwilling to negotiate with you, the only other option may be to file for bankruptcy protection.

A job loss, medical emergency or other financial disaster has eliminated your ability to generate monthly income. Medical bills are the number one cause of U.S. bankruptcy filings. Even having health insurance does not shield consumers from overwhelming medical debt. Bills and debt can pile up quickly without the monthly income, leaving consumers with no way out.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all 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, 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.

Related Resources:

http://www.csmonitor.com/Business/Saving-Money/2015/1116/Three-times-bankruptcy-is-the-right-decision

Bankruptcy Law, Credit, Timothy Kingcade Posts

Consumers Still Struggling with Medical Debt

Posted on February 18, 2015by Admin

The Federal Health Care Law was intended to keep an unexpected illness or injury from bankrupting Americans. When calling for the law’s passage, President Obama proudly declared, “people shouldn’t go broke because they get sick.” Even though the Affordable Health Care Act has authorized states to expand eligibility for Medicaid and created online insurance markets for those without employer coverage to qualify for federal subsidies- it hasn’t solved the problem.

In 2013, medical debt was the largest cause of personal bankruptcy — 1.7 million people lived in households experiencing bankruptcy because of health costs. The health care law brought regulations that limited for the first time the cost-sharing in plans. For example, an individual plan sold on an exchange cannot include out-of-pocket costs greater than $6,600. In practice, the average deductible (which must be paid before insurance kicks in), varies based on how expensive a plan is. This regulation still only applies to “in-network” doctors and specialists, which can be a short list. Many vulnerable consumers are incurring medical debt by visiting unapproved doctors or hospitals.

Deductibles keep growing. Last year, work-sponsored insurance plans had an average deductible of about $1,200. In 2009, the average deductible was $826. And this year, the silver plans sold through the federal marketplace require people to pay on average more than $2,500 or approximately $3,500 before their insurance benefits kick in. Bronze plans, known for having cheaper monthly premiums have average deductibles of about $5,300.

Even with the Affordable Health Care Plan in place, efforts to regulate how providers can collect on patient debt remain limited. For instance, hospitals and doctors can still obtain judgments, garnish paychecks and go after people’s assets, including their homes.

Click here to read more on this story.
http://www.usatoday.com/story/news/2015/02/01/consumers-still-struggling-with-medical-debt/22587749/

Bankruptcy Law, Credit, Timothy Kingcade Posts

To Collect Debts, Nursing Homes are Seizing Control over Patients

Posted on January 29, 2015by Admin

Lillian Palermo did her best to prepare for end of life care. She arranged for her power of attorney and health care proxy to be her husband, if she ever became incapacitated. Now in her 80’s, her husband Dino, eight years her junior, feeds her home-cooked Italian meals, sings her favorite songs and pays a private aide to be there when he cannot at the Catholic nursing home in Manhattan.

Last summer, after he disputed nursing home bills that had suddenly doubled his wife’s co-pays, and complained about the inexperienced employees who dropped his wife on the floor, Mr. Palmero was shocked to find a six-page legal document lying on her bed. It was a guardianship petition filed by the nursing home, asking the court to give a stranger full legal power over Mrs. Palermo, now 90, and complete control of her money.

Many people are unaware that a nursing home can take such a step. However, interviews with system veterans and a review of the guardianship court data show this practice has become routine, shedding light on the growing power nursing homes have over residents and family members amid changes in the financing of long-term care. At least one judge has ruled this tactic by nursing homes is an abuse of the law, but the petitions, even if they are ultimately unsuccessful, force families into costly legal battles.

Mr. Palermo, 82, was devastated by the petition. A court evaluator eventually reported that Mr. Palermo was the appropriate guardian, but not before his legal expenses reached $10,000. In the end, Medicaid’s recalculation put his wife’s monthly co-pay at $4,558.54, almost $600 less than the nursing home had claimed, but far more than the $2,642 Mr. Palermo had been paying under an earlier Medicaid calculation. As soon as the nursing home cashed his check for the outstanding balance, it withdrew the guardianship petition.

Click here to read more on this story.

http://www.nytimes.com/2015/01/26/nyregion/to-collect-debts-nursing-home-seizing-control-over-patients.html

Bankruptcy Law, Credit, Timothy Kingcade Posts

New Rules Limit Hospitals’ Collection Fee Tactics

Posted on January 28, 2015by Admin

The Obama administration has adopted a new set of rules to discourage nonprofit hospitals from using aggressive tactics to collect payment from low-income patients. These new rules require nonprofit hospitals to offer discounts, free care or other financial assistance to low-income patients. In addition, hospitals are required to try and determine whether a patient is eligible for assistance before the case is referred to a debt collector, negative information is sent to a credit agency, a lien is placed on the patient’s home, filing a lawsuit or seeking a court order to garnish a patient’s wages.

The rules apply to nonprofit hospitals that are seeking or have tax-exempt status, about 60 percent of hospitals nationwide. Because the Consumer Financial Protection Bureau has endorsed these new rules, health care lawyers believe this could set an industry standard, influencing the practices of for-profit hospitals.

These new rules should make it easier for low- and moderate-income patients to get valuable medical care without having to worry about a large hospital bill or collection agency harassing them for money they do not have. The rules do not prevent a hospital from engaging in lawful debt collection; however, it does require hospitals to first evaluate a patient’s need for financial assistance. In addition, each nonprofit hospital must establish and publicize in a written policy stating who is eligible for financial assistance and how patients can apply.

Many people are just one medical emergency or illness away from a financial crisis. In fact, medical bills are the number one reason people file bankruptcy. For those struggling with the financial weight of a health crisis, Chapter 7 bankruptcy is a way for you to eliminate all of your medical bills in only a couple of months, and start fresh!

Click here to read more on this story.
http://www.nytimes.com/2015/01/12/us/politics/new-rules-to-limit-tactics-on-hospitals-fee-collections.html?_r=1

If you are burdened with medical debt and wondering how Chapter 7 bankruptcy can help, 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, 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.