Once you decide to file for bankruptcy to alleviate overwhelming medical debt, you must consider how best to protect yourself in the future. Unless you take steps to prevent this debt from happening again, you can find yourself again in a state of medical debt without having to file for bankruptcy again. Protecting yourself from future medical debts when filing Chapter 7 or Chapter 13 bankruptcy should be one of your first concerns. Individuals who have gone bankrupt due to severe medical costs have had difficulty understanding their health insurance coverage and have not fully protected them from financial disasters. Most people get insurance through a medical insurance plan provided by their employer. These plans usually cover only a small percentage of the cost of a catastrophic illness or emergency. Some people buy their own health care plans. These people are usually self-employed. Personalized health insurance is very expensive and these plans have limitations. Despite this, individuals can choose to supplement their health insurance to minimize risk and be overwhelmed by medical debt.
Custom health insurance can be a useful strategy. Individuals who purchase their own health insurance can customize their insurance plans based on individual needs. They can change their deductibles and coverage to reflect their specific health. While the health insurance provided by employers is usually cheaper, the ability to modify the program to meet their individual needs has declined. One option offered by some employers is to provide a subsidy instead of medical insurance. This allows employees to purchase more personal insurance plans.
Disastrous insurance is another option that individuals can take to protect themselves from future medical responsibilities. Catastrophic health insurance costs are lower and can enhance an individual's health plan by including only medical emergencies.
A Health Savings Account [HSA] can be a useful tool for managing medical debt. This is a tax-deductible medical savings account for taxpayers who participate in the High Deductible Health Plan. Funds donated to HSA are not subject to federal income tax when depositing. If there is no cost, these funds will roll and accumulate year by year. This approach allows individuals to set aside a certain amount of HSA per month. These funds can be used to pay for deductibles and other health care costs not covered by the health care plan. The Flexible Expenditure Account [FSA] is another tool provided by employers to help employees manage health care costs, but FSA has obvious shortcomings.
These are just a few examples that individuals can consider when optimizing their health insurance to protect them and their loved ones from the threat of medical debt and bankruptcy. When planning a medical emergency, individuals must consider many other issues, such as lost income. Medical emergencies are very difficult to predict and no one will be immune to the possibility of a medical crisis. It is a good idea to plan ahead for the financial impact of a potential health care crisis.
D. Dyes
Orignal From: Is the bankruptcy due to overwhelming health care debt? Protect your future
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