medical debt Archives - Page 9 of 10

Medical Debt Responsible for the Majority of Bankruptcy Claims in the U.S.

Posted on November 12, 2014by Admin

Consumers may be surprised to find out that it is not credit card debt that is the leading cause of bankruptcy, but medical debt. According to a recent study, Americans pay three times more in third-party collections from medical debt each year than they pay for bank and credit card debt combined. This year alone, approximately 51 million Americans will be contacted by a debt collection agency about a medical bill- that’s roughly one in five! This means more than $1 out of every $3 paid to third-party collectors is for medical debt.

The study conducted by NerdWallet Health also indicated that many of the people who are facing medical debt are being mistakenly overcharged. In fact, the study found hospital billing errors with overages of up to 26%. These billing errors were even more prominent with Medicare patients.

The study highlighted that Medicare Compliance reviews conducted by the Office of the Inspector General found that none of the hospitals they audited fully complied with Medicare billing requirements, with nearly half (49%) of the Medicare claims containing billing errors.

Considering that American households have lost $2,300 in median income, while health care expenses have increased $1,814, it would be wise for American consumers to take more initiative in understanding their health insurance packages. Out-of-pocket spending on healthcare is expected to accelerate to a 5.5% annual growth rate by 2023. That is double the growth of GDP.

While the Affordable Care Act (ACA) is a step in helping consumers avoid medical bankruptcies, by eliminating the underwriting process and subsidizing healthcare health care for those who would otherwise be uninsured- it can cause problems for individuals and families who choose the wrong plan.

According to health care experts, the average deductible for a silver plan can be upwards of $3,000 for an individual or $6,000 for a family — and that is just for in-network care. While 2015 out-of-pocket expenses are capped at $6,600 for an individual and $13,200 for a family, plans may impose separate out-of-pocket maxes — or have no max at all for out of network doctors and hospitals. Given the narrow network of approved providers within these plans, it becomes a likely scenario that an individual will at one point accidentally visit an out-of-network doctor or clinic and then be stuck with a large bill.

It is important consumers know that the ACA offers an external appeals process for health plan decisions, which provides recourse to individuals who face large medical bills after undergoing medical care that was not covered by their health insurance plan. A recent study in California even found that nearly half of such insurance denials were overturned in favor of the patient after review by an external board.

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.

http://www.alllaw.com/articles/nolo/bankruptcy/can-file-bankruptcy-eliminate-medical-bills.html

Bankruptcy Law, Credit, Timothy Kingcade Posts

Medical Bills Cause more than 60% of Bankruptcies in U.S.

Posted on September 29, 2014by Admin

CNN analysts estimate that at least 1.5 million Americans will file for bankruptcy this year, for some it will be the result of overspending, but for 60% medical debt will be the leading cause. Over the past 6 years, the number of bankruptcy filings due to medical debt has almost doubled from 46% to 62%. The majority of those who filed for bankruptcy represent the middle class and those with good education. Many families are unaware that they are just one illness away from financial ruin. Medical bills are causing excessive stress in one out of five American families today.

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, 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, Timothy Kingcade Posts

Prescription Costs Fuel Medical Debt and Rise in Bankruptcy Filings

Posted on May 30, 2014by Admin

Last year, the federal government reported that Americans had $41 billion in out-of-pocket costs associated with prescription drugs. Experts agree that those prescription drug costs will continue to play a key role in medical related debt and bankruptcies despite the expansion of insurance for millions under the Affordable Care Act.

Even though more people will be getting their medications covered by insurance, there is a growing trend in both the individual insurance market and the employer-provided insurance market toward having insured people pay an increasing share of medical costs, including their prescriptions.

For many Americans, their individual monthly premiums can total a couple hundred dollars a month, combined with annual deductibles ranging in the thousands, out-of-pocket expenses can add up quickly. Yet many people, particularly those with low incomes are unfamiliar with the myriad of health insurance plans that can play a role in how much they pay for their prescriptions. Their lack of knowledge increases the likelihood they will fall into the medical debt trap.

A report from NerdWallet last year found that medical debt was the single leading cause of bankruptcy in the U.S. and that 56 million Americans had problems paying their medical bills. A new report last week by the Consumer Financial Protection Bureau found that 52 percent of accounts sent to collections and placed on people’s credit reports stemmed from medical debt.

If you are in a financial crisis and are considering filing 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.

Related Resources: http://www.cnbc.com/id/101686432

Bankruptcy Law, Credit, Timothy Kingcade Posts

Five Ways to Handle an Unexpected Medical Bill

Posted on May 1, 2014by Admin

If you are involved in an accident or suffer an unexpected illness, getting well and your recovery can be just part of the battle. According to a recent study done by Clear Point Credit Counseling Solutions and the Kaiser Foundation, 1 in 3 Americans report having difficulty paying their medical bills.

Medical debt can often lead to other financial problems. Some consumers are on the verge of foreclosure because they have opted to pay their medical bills instead of their mortgage, others are pulling from retirement accounts and facing tax consequences in order to cover medical debt.

Below are 5 tips to help you handle an unexpected medical bill.

1.) Negotiate. If you can afford to pay a portion of the bill, you may be able to negotiate with your medical provider to settle the debt for less than the amount owed. Make sure and get the terms of the settlement in writing and keep a copy for your records.

2.) Request a payment plan. Ask to be put on a payment plan. This is one of the cheapest ways to pay off the debt over time, without accruing any interest.

3.) Use credit with caution. If you have a low-interest or 0% interest credit card, you may want to charge your procedure and pay it off completely before the interest accrues. Beware of “medical credit cards.” Most of these cards carry very high interest rates and if you happen to miss a payment or do not pay off the balance in full by the time the no-interest promotional period ends, you could wind of paying interest on the entire balance, not just the amount you have remaining.

4.) Use a personal loan. This is often a more attractive option than a credit card and is better for your credit score than maxing out a credit card. Come up with a budget and know exactly how much you need to pay until the debt is paid off.

5.) Ask for help. If you are dealing with insurmountable medical debt, request a copy of the hospital’s financial assistance policy. If you are eligible, programs like this may be able to significantly reduce your bill. If your medical bills are so large that you cannot possibly pay them off and you have exhausted all other options, you may want to speak with 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, Timothy Kingcade Posts

Medical Debt: The Number One Cause of Personal Bankruptcy

Posted on February 10, 2014by Admin

This year it is expected that 1.7 million American households will be forced to file for bankruptcy due to overwhelming medical debt. This makes medical debt the largest cause of personal bankruptcy filings- surpassing credit card bills and unpaid mortgages, according to new data. Even having health insurance does not shield many Americans from the weight of medical debt.

According to recent data, 25 million Americans hesitate to take their medications in an effort to control medical costs. However, delaying the needed medication is only a short-term fix which can often result in expensive emergency room visits or worse.

More than 20 percent of the population between the ages of 19 and 64 will struggle to pay some sort of medical debt. High-deductible insurance plans, requiring consumers to pay more out-of-pocket expenses, are the most challenging for Americans. With the average American family bringing home just $50,000 a year, an unexpected medical bill coupled with a high-deductible insurance premium can quickly become unmanageable debt.

Obamacare is not likely to fix the problem. While the Affordable Care Act will give more people coverage, those with year-round coverage are likely to still be overwhelmed with medical debt. The number of households forecast to file for medical-related bankruptcies this year is three out of every five filings.

Data from NerdWallet Health revealed that 15 million people will deplete their savings to cover unexpected medical bills. Another 10 million will be unable to pay for necessities such as rent, food and utilities because of those bills.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

$34 Million Settlement Received for Consumers Victimized by Medical Credit Cards

Posted on December 15, 2013by Admin

GE Capital has agreed to pay up to $34 million to resolve allegations that it misled consumers about the terms for credit cards offered by doctors to pay for medical procedures. This is the first settlement of its kind involving medical credit cards, which doctors and dentists offer to patients to finance expensive treatments, typically not covered by insurance. While these medical credit cards resemble other credit cards, there is a critical difference: they are marketed by caregivers to patients, often at vulnerable times, such as when those patients are in pain or when their providers have recommended care they cannot afford or insurance will not pay for.

The recent settlement comes as the Consumer Financial Protection Bureau is scrutinizing deferred interest financing plans, under which borrowers pay no interest for a set period of time, but are later hit with higher interest rates, oftentimes much higher than traditional credit cards. Credit card issuers have come under fire over disclosures for marketing medical credit cards, which often come with initial interest rates of 0% that later jump to double-digit rates if the amount owed is not paid off in full before the promotional period ends. Deferred interest cards, increasingly common in medical offices, are also offered widely by retailers with deferred financing terms for big purchases.

CareCredit, a division of GE Capital, is the largest issuer of medical credit cards with around four million cardholders and 175,000 participating medical offices. The CFPB said CareCredit placed borrowers in a financing plan without ensuring that the medical office staff selling the plan gave a thorough explanation as to the terms and conditions of these cards. The bureau said many consumers believed they were not being charged interest, when they were actually being levied nearly 27% interest after an initial interest-free period.

The settlement has resulted in GE Capital having to notify more than 1.2 million consumers that they can file a reimbursement claim for interest charges and fees. In addition, CareCredit must contact new consumers directly within 72 hours of taking out a credit card loan to explain the terms and conditions to them.

Click here to read more on the story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

The Dangers of Medical Credit Cards

Posted on October 22, 2013by Admin

We all know that medical bills can be costly, especially when insurance only covers a small portion of the procedure. But recently, some doctors have been offering a solution to this problem- a special line of credit to help cover your bill. What seems like a perfect solution is becoming a credit nightmare for many. This “buy now pay later” option comes at a cost- high interest rates and severe penalties if payments are late or missed.

A growing number of health care professionals are urging patients to pay for treatment not covered by their insurance plans with credit cards and lines of credit that can be arranged quickly in the provider’s office. The cards and loans, which were first marketed about a decade ago for cosmetic surgery and other elective procedures, not typically covered by insurance, are now victimizing older Americans.

Patrcia Gannon, 78, learned the hard way when she signed up for Dr. Knelinnger’s medical credit card to cover her partial denture. The cost for the procedure was more than $5,700. She pays roughly $214 a month, which eats up about a third of her Social Security check. If she is late, she faces a penalty of $50. The interest rate for the card is 23 percent and she receives a 33 percent penalty rate if a payment is missed or late.

Doctors, dentists and other medical professionals have a financial incentive to recommend the financing because it encourages patients to opt for procedures and products that they might otherwise forgo because they are not covered by insurance. It also ensures that providers are paid upfront — a fact that financial services companies promote in marketing material to providers.

While medical credit cards resemble other credit cards, there is a critical difference: they are marketed by caregivers to patients, often at vulnerable times, such as when those patients are in pain or when their providers have recommended care they cannot afford or insurance will not pay for.

The problem has become so severe that attorneys in several states have filed lawsuits claiming that certain dental practices and other medical professionals have misled patients about the financial terms of the cards, employed high-pressure sales tactics and overcharged for treatments and billed unauthorized work.

The New York attorney general’s office found that health care providers had pressured patients into getting credit cards from one company, CareCredit, a unit of General Electric, which gave some providers discounts based on the volume of transactions. The investigation found that patients were misled about the terms of the credit cards, and in some instances, tricked into believing that they were agreeing to a payment plan with the medical provider when, in fact, they were being pushed into high-cost credit.

Click here to read more on this story and the dangers of medical credit cards.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Bankruptcy Blunders: Top Reasons Your Bankruptcy Filing May Get Rejected

Posted on September 11, 2013by Admin

A recent FindLaw.com survey revealed that one in eight Americans have considered filing for bankruptcy. Whether because of a job loss, carrying an excessive amount of credit card debt or medical debt, a large number of Americans have considered the option of bankruptcy to gain a fresh financial start. But not everyone’s case is accepted by bankruptcy courts. Your bankruptcy filing can be rejected for a number of reasons- often due to mistakes or omissions of proper paperwork. That is why it is crucial you hire an experienced bankruptcy attorney to assist you in the process.

Below are a few reasons why your bankruptcy filing could be rejected:

1.) You do not pass the “means test” in court. In order to qualify for Chapter 7 bankruptcy, where most of your unsecured debts are wiped out, you must pass a “means test” imposed by the court. The means test is a way for the court to determine how much disposable income you have. If you have too much money, a court may reject your Chapter 7 bankruptcy request. It is important to meet with an experienced bankruptcy attorney who will advise you of all your options and let you know if you qualify for Chapter 7. At Kingcade & Garcia, P.A. we offer free consultations where we sit down with our clients, assess their financial situation and determine if bankruptcy is the right option for them.

2.) You fail to provide requested tax documents or fail to appear at the creditor meeting. The court may reject or dismiss your bankruptcy case if you misrepresent your tax information or fail to provide tax documents altogether. In past years, you were not required to file tax returns to pursue bankruptcy. But since bankruptcy reform passed in 2005, this has become a requirement.

3.) You submit a proposed repayment plan that is not feasible. With a Chapter 13 bankruptcy filing, you repay some of your debts over a period of three to five years. If you file for Chapter 13 bankruptcy and set up a repayment plan, your proposed plan must be feasible in order to be accepted by the courts. The courts will review your current income, debts and assets to determine whether you can realistically pay back your creditors under the Chapter 13 plan. If you cannot, they can reject your case.

4.) Someone challenges your bankruptcy request. Once you have filed for Chapter 7, the goal is to get a “discharge” of your debts. A discharge is a permanent court order that relieves you of any legal liability to pay unsecured debts like medical bills or credit card debts. However, for those filing a Chapter 7, a creditor or the bankruptcy trustee has the right to challenge your discharge. This can occur if the trustee or debtor believes you have been dishonest or committed fraud in some way. These can include: hiding assets, making false statements or even failing to appear at mandatory credit counseling- any and all of these can result in a challenge.

Click here to read more on the top reasons your bankruptcy filing could get rejected.

Bankruptcy Law, Timothy Kingcade Posts

Study Finds People Diagnosed with Cancer More Likely to Declare Bankruptcy

Posted on May 22, 2013by Admin

According to a recent study from Fred Hutchinson Cancer Research Center, people diagnosed with cancer are more than two-and-a-half times more likely to declare bankruptcy than those without cancer. Researchers also found that younger cancer patients had two- to five-fold higher bankruptcy rates compared to older patients, and that overall bankruptcy filings increased as time passed following diagnosis.

“This study found strong evidence of a link between cancer diagnosis and increased risk of bankruptcy,” the authors of the study wrote. “Although the risk of bankruptcy for cancer patients is relatively low in absolute terms, bankruptcy represents an extreme manifestation of what is probably a larger picture of economic hardship for cancer patients.” Medical debt is one of the main causes of filing for bankruptcy. In fact, it’s a contributing factor in more than half of all bankruptcy filings. This study raises important questions about the factors underlying the relationship between cancer and financial hardship.

Click here to read more about the study that links cancer diagnosis to an increased risk of filing for bankruptcy.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Doctors Driven to Bankruptcy

Posted on May 2, 2013by Admin

This reads as an unlikely headline, but recently a number of doctors have been struggling to keep their medical practices financially sound. According to the American Bankruptcy Institute’s Health Care Committee, Chapter 11 bankruptcy filings by physician practices have recently spiked. In recent weeks, there were at least eight filings, which is unusual for the industry.

In many cases it is not major medical malpractice lawsuits leading doctors to file bankruptcy, it is the struggling economy that has been blamed for this growing trend. Patients are cutting back on doctor visits and elective procedures due to their own financial hardships. Doctors attribute their financial struggles to shrinking insurance reimbursements, changing regulations and the rising cots of malpractice insurance, drugs and other business necessities.

Click here to read more on doctors being driven to bankruptcy.