It is not just the uninsured who face medical debt, many with health insurance have large deductibles and coinsurance. The maximum out of pocket for most ACA policies is $9100 for an individual and double that per family. Many individuals simply do not understand that seeing an out of network provider often results in a very expensive bill. For those with high deductibles, many are forced into such coverage to control costs. One serious accident or illness and the next thing they know they are facing a bill they cannot cover.
Recently, some progress has been made. Credit reporting agencies no longer report medical bills of $500 or less as past due. On the federal legislative side, the No Surprises Act was passed. The Act helps protect those receiving out of network bills associated with a trip to the emergency room as well as hospital stays.
There is a non-profit named RIP Medical Debt that buys debt from medical providers and hospitals at a discounted rate. The medical providers get something instead of nothing when it comes to the debt. The patients with the debt are relieved of the burden. Every $100 raised by RIP eliminates $10,000 in debt. RIP also receives funds from local government agencies funded by the federal government.
Younger individuals that incur medical debt often believe that such debt cannot affect them because they likely have no assets to speak of… the old’ saying that you can’t get blood from a stone comes to mind. And this is true, you can’t, but what a medical provider can do is plaque your credit rating for years!
Purchasing an Arizona HSA qualified health plan and funding the HSA account over time is the smartest move a person can make. When faced with a large medical bill the money will be there (tax-free) to pay for the medical services. Never use out of network providers. And lastly, if traveling out of country be sure to buy travel medical insurance.