Until Health Care Reform Takes Effect

While a large number of bankruptcies include medical expenses, there is no such thing as a “medical bankruptcy.” Thankfully, health insurance reform will push fewer clients over the financial edge.

While the full bill won’t be enacted for four more years, several changes are now in effect:

1. More services will be paid in full, regardless of deductibles and copays
2. The lifetime benefit “cap” is a thing of history
3. Your children can remain on your policy (if you have one) until age 26
4. Children with pre-existing conditions cannot be denied coverage (but it’s unclear whether they can be charged a higher premium)
5. 85% of insurance company revenues must go into paying for health care, otherwise the company can be required to give you a rebate

If you have difficulty paying your bills, medical or otherwise, consult with an attorney well versed in bankruptcy and debtor law.