Many people face great problems if they have unpaid medical expenses. These expenses can become a threat to your home, savings or income. Without any medical insurance, prolonged hospitalization can become a financial burden of up to tens of thousands or even hundreds of thousands of dollars. In the event that a reasonable repayment plan is not initiated before the start of treatment, unpaid invoices will become a major collection procedure shortly after the end of the treatment period. Depending on the situation you live in, you can attach your home, savings or other personal property to compensate for unpaid medical bills.
Even if you have insurance, the financial risk of co-pays, large deductibles and uncovered treatment can be significant. There are instances in which out of network physicians are brought in during any procedure without the knowledge of the patient or their approval. Some policies cover only a small portion of these charges. Although the Affordable Care Act requires insurance companies to pay these charges, there have been cases where parts of what should have been covered were not covered.
What happens if you obtain medical treatment which costs tens or hundreds of thousands of dollars and your insurer rejects the claim because of an unmet deductible, a co-pay, an out of network physician, or for a treatment or medicine that is not approved? Who pays the doctor and the hospital? If there is no insurance or the amount is limited, your doctor, hospital or other medical facility will compel you to guarantee full payment of the costs billed, less any amount actually reimbursed by your insurer. Whatever amount your insurance company does not pay will be the responsibility of the patient.
What happens when the patient cannot pay the treatment?
What happens when you can't pay a big medical bill? Usually the result is a lawsuit filed by the hospital or a collection agency with a verdict and a concession against the patient's home and accounts. In most states, part of the debtor's employment revenue can be decorated. Several times before reaching this point, the patient offers a personal bankruptcy to stop the work of wages and eliminate medical bills and other debts. This requires the seizure of all assets, including savings, real estate and real estate shares. Some of these assets are exempt from bankruptcy and will be handed over to the court and divided among creditors.
How to protect patients from these events ?
Family Savings Trust
Asset protection through an explicitly designed Family Savings Trust can often provide savings from these events. The Family Savings Trust is exceptionally
flexible and can include provisions, which incorporate the features of many local arrangements in the language of the plan documents. All your assets can be included in the Trust fund, but managed under special conditions appropriate for those assets.
For those interested in protecting against unforeseen medical bills, a trust can be customized to specifically to address the issue of medical expenses. The trust may be planned to hold your home, savings and brokerage accounts with the aim of shielding these assets from unexpected medical expenses. It is often designed to safeguard the tax benefits associated with the home (including the mortgage interest deduction, property taxes, and avoidance of gain on a future sale), while carrying out proper estate planning and asset protection goals for family wealth.
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