When to File Bankruptcy?

[danstelter]

Hi everyone,

FYI - My wife and I are not in a position where we need to do this, but given her health condition (she's made 30 trips to the ER in 24 months or so, but we thankfully have been low income and have been covered by state insurance), and the fact that I've started a business that will most likely get us kicked off state health insurance, I'm trying to figure out how to plan for many ER trips, if those costs arise.

If she gets FT work at her current job (which is likely), then it's easy because she'll get health insurance.

If she doesn't, our state health insurance ends on 4/30/15, and if my business keeps growing, we won't be eligible again.

I've figured out we can buy into HIRSP (the only insurance available to someone with pre-existing conditions) to protect us somewhat from massive medical bills.

My question is lengthy:

If we purchase our own health insurance, but still make 15 or so ER trips during the year, should I just make minimum payments on our health insurance to keep the bills out of collections, until bankruptcy becomes the best option? For example, there's no sense in paying off $1000 deductibles in their entirety if you're going to get more of them than you can financially handle anyway!

Is bankruptcy the best option once our monthly debt payments and living expenses exceed our incomes (is this the best question to ask when filing bankruptcy)?

I guess the main concern I have is I don't want to waste thousands of dollars paying off medical debt if we just end up getting more than we can pay anyway.

How does bankruptcy work in Wisconsin (a community property state)? If my wife files, how will that affect me?

What advice do others have on this scenario?

P.S. - Please don't criticize me as "irresponsible" and wanting to avoid paying someone else money. I want to take care of all my bills and get rid of all debt my wife and I have. Everyone knows health care costs are out of control in this country, and what's the sense in making massive payments if they're just going to keep coming anyway?

[bjl584]

I was in physical therapy for my back a couple years ago. I had to go 6 times with a $20 copay each time. I talked to my doctor and we worked out a deal so I only had to pay the copay once. I saved $100 that way. If you know you are going to be making several trips to the hospital, then maybe you can work out something similar. Just a thought.

What would HIRSP cover and how much is it?

If your business grows and if your wife can find fulltime employment, then this problem may take care of itself. I wouldn't start thinking about bankruptcy just yet.

[danstelter]

bjl584 -

Thanks for the reply!

HIRSP is government assisted health insurance that covers people with pre-existing health conditions (it results from some Obama Care stuff). It costs basically the same as private health insurance $500 or so per month for a $1000 deductible), but they cover people with pre-existing conditions, whereas private health insurers do not.

I'm not thinking about filing bankruptcy yet, but I am trying to mitigate the financial damage as much as possible.

[bjl584]

Originally Posted by danstelter

bjl584 -

Thanks for the reply!

HIRSP is government assisted health insurance that covers people with pre-existing health conditions (it results from some Obama Care stuff). It costs basically the same as private health insurance $500 or so per month for a $1000 deductible), but they cover people with pre-existing conditions, whereas private health insurers do not.

I'm not thinking about filing bankruptcy yet, but I am trying to mitigate the financial damage as much as possible.

So, is that a $1000 deductible for every trip to the hospital? With my health coverage if I have to go to the ER, my deductible is waved if I have to be admitted. Does HIRSP do something similar?

What is your wife suffering wife if you don't mind me asking?

[danstelter]

My wife has an ongoing issue with ovarian cysts since she was a teen. It only required 1-2 ER trips per year until we got married and all hell broke loose. It's getting better, for what it's worth. We went for just about everything under the sun during the time too, but all the problems are now resolved except for ovarian cysts and mysterious abdominal pain (doctors can't always find the cause).

We're trying my mother-in-law's holistic doctor because the medical ones can't find the solution.

Good point about HIRSP. I'm not sure if they wave the deductible for an ER trip, but my impression was that they do not.

[bjl584]

Originally Posted by danstelter

My wife has an ongoing issue with ovarian cysts since she was a teen. It only required 1-2 ER trips per year until we got married and all hell broke loose. It's getting better, for what it's worth. We went for just about everything under the sun during the time too, but all the problems are now resolved except for ovarian cysts and mysterious abdominal pain (doctors can't always find the cause).

We're trying my mother-in-law's holistic doctor because the medical ones can't find the solution.

Good point about HIRSP. I'm not sure if they wave the deductible for an ER trip, but my impression was that they do not.

It may be worth looking into to see if there is a fee waiver for admittance. My cousin's wife just had a hysterectomy for ongoing problems. I wonder if that may be an option? I'm not a doctor, so I can't say for sure if that would even help.

[HousingCounselor]

Originally Posted by bjl584

So, is that a $1000 deductible for every trip to the hospital? With my health coverage if I have to go to the ER, my deductible is waved if I have to be admitted. Does HIRSP do something similar?

What is your wife suffering wife if you don't mind me asking?

Check to see if it's $1000 per calendar year. Most insurance plans are set up so that once you hit your deductible they cover anywhere from 70-90% of your remaining health care costs until the next year.

Also medical debt is the easiest debt to negotiate. Most healthcare providers allow affordable payment plans or generous deductions from the bill if you can pay in full.

[photo]

Originally Posted by danstelter

bjl584 -
HIRSP is government assisted health insurance that covers people with pre-existing health conditions (it results from some Obama Care stuff). It costs basically the same as private health insurance $500 or so per month for a $1000 deductible), but they cover people with pre-existing conditions, whereas private health insurers do not.

I'm not thinking about filing bankruptcy yet, but I am trying to mitigate the financial damage as much as possible.

Serious question: isn't Obamacare supposed to prevent people from draining their savings for medical expenditures?

[jpg7n16]

Here's your plan info:

http://hirsp.org/pdfs/HIRSP_Fed_Pool_Comp_2012.pdf

Page 3 states that the deductible is Annual, not per visit. It also stipulates an out of pocket max based on your plan type.


For a better explanation of how the benefits will apply to you, give them a call: HIRSP - Contacts


Edit: oh and bankruptcy won't fix that you cannot afford your medical costs. Gotta do something about your income. Even if you file, you'll still be in trouble financially if nothing changes.

Could either of you get a FT job with family coverage? Group insurance excludes pre-existing issues from what I remember...

[bjl584]

Originally Posted by photo

Serious question: isn't Obamacare supposed to prevent people from draining their savings for medical expenditures?

That's a misconception. Obamacare isn't universal healthcare like in Canada or in European countries. Under his plan, everyone will be required to have health coverage, but the coverage itself will still be run by private industry.

[photo]

Originally Posted by bjl584

That's a misconception. Obamacare isn't universal healthcare like in Canada or in European countries. Under his plan, everyone will be required to have health coverage, but the coverage itself will still be run by private industry.

Isn't it supposed to be affordable healthcare? What if someone cannot afford payments?