How The High Cost Of Medical Care Can Lead To Bankruptcy

Bankruptcy and the high cost of medical care are often tied hand in hand for those Americans that are not insured. Many people have medical insurance through their employers but the cost of this benefit is causing more and more employers to terminate health insurance for workers. Unfortunately, those Americans that do not have health care insurance through their employers are seldom able to afford to purchase medical insurance for themselves and their families.

One of the most valid reasons for bankruptcy these days involves the high cost of medical care. Even for those people that have basic health care insurance, they can still end up in bankruptcy and the high cost of medical care can be the cause.

Most health insurance policies, except catastrophic medical insurance, stops paying when the payment amount has reached a specific limit for any insured person. This is often $100,000 but in some cases it may be higher. This is known as the 'lifetime benefit maximum'. Sure, that sounds like a high maximum and you don't expect to ever exceed this amount, right? Think again.

What would happen if you, your child or your spouse had to have a bone marrow transplant in order to save the life of the family member? You may think that your insurance, if you are lucky enough to have health care insurance, would take care of the problem and bankruptcy couldn't be a result of the life-saving medical care. Yet, a bone marrow transplant - just the procedure, not the required follow-up medication and doctor's visits - can cost $1 million. However, if the person that needs the transplant is insured, they've probably had some of their lifetime maximum already paid out by the insurer. After all, there had to be doctor's visits and treatments attempted before it was determined that the only possible solution was the bone marrow transplant. All of a sudden, the insurance will not pay anymore. Your benefits are exhausted and the patient still has to have anti-rejection medications and follow-up treatments for years and years to come.

This same situation, often resulting in bankruptcy for the family, can result from any type of organ transplant, any long-term care situation, and any major life-saving treatment that takes some time to perform. Suddenly, the family is not only dealing with a seriously ill family member, or even worse the loss of a loved one, and they are faced with insurmountable medical bills. This often leaves no way out except to file bankruptcy.

Bankruptcy and the high cost of medical care do go hand in hand. It is a sad but true fact about medical care in American today. However, the fact that we have the most advanced medical care in the world is a true blessing. What is the solution? That is yet to be determined. But, when you hear of someone declaring bankruptcy, remember that it may not have been imprudence in handling their income. It may have been the result of the high cost of medicine today.

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