Medical bills have become a heavy financial burden for many Americans, but a new report suggests what is owed might not be accurate.
According to a recent analysis by Nerd Wallet, a financial research website, an average of 49 percent of medical bills contains errors. Patients without insurance or with high copays can be especially hurt by erroneous medical bills, which often exceed several thousand dollars.
Another report by the Consumer Financial Protection Bureau suggests that 52 percent of debt on credit reports is due to medical bills. The average medical bill placed in collections is worth $579, but patients who have received emergency services and lack insurance can have bills that exceed $10,000.
What happens when people cannot pay their medical bills? Nonstop phone calls from collection agencies, lawsuits, wage garnishments and embarrassment. Billing errors can cost people more than just money, but also peace of mind.
Will Filing for Bankruptcy Help Reduce or Discharge Medical Bills?
While there are ways to correct billing errors, the remaining balance can still be very high. Other options exist that can help individuals eliminate excessive debt, nagging phone calls and potential lawsuits.
Depending on the situation, individuals overwhelmed by medical debt may be able to file for Chapter 13 bankruptcy or Chapter 7 bankruptcy. Contacting an attorney can be the first step in stopping collection activity, reducing payments or even discharging medical debt.
The Sader Law Firm – Kansas City Bankruptcy Attorneys