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Thank you all. I am most definitely looking into bankruptcy. Also, I am not a homeowner but I do make car payments. Concerned about losing my car, it’s not new by any means - it’s 5 years old (going on 6) but I drive it minimally so it only has 60k mileage.
I’m very worried though, if I end up having any other medical issues - I can’t just keep declaring bankruptcy over and over?
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,550 posts, read 81,103,317 times
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Quote:
Originally Posted by bigbear99
That's not my understanding, based on many recent news reports. I doubt the OP is a homeowner?
I still think it's time for the OP to play hardball back. What are the alternatives? None.
Yes, hospitals do turn over to collection agencies, I know this from experience. On one bill my wife had made arrangements but got a call from a collection agency on it. Turns out the hospital AR people had messed up so they pulled it back from collections. Collection agencies will pursue all options including court to obtain a judgement and garnish wages.
Don't go bankrupt over $5000. How can you make some extra money, can you work part time, get overtime on your current job, sell some things, borrow from family?
Set up the payment plan with the hospital, get the lowest payment they will allow and do your best. Keep in contact with the billing department if you ever have trouble making the full payment.
Long story short, I guess I am fortunate to have a full time job with benefits. I work 40 hours per week and make 16.50 per hour. Before taxes and deductions, this comes out to roughly $33K per year - but my net paychecks are approx $940 every 2 weeks.
So the quandary I’m faced with is my employer offers 2 health plans. One with a $5500 deductible and $6500 total out of pocket - employer contributes $70 to an HSA every 2 weeks. I pay $90 per paycheck for this single coverage! The only other option is a $2K deductible with $5K out of pocket, no HSA contribution and I’d pay almost double ($140per paycheck) for that single coverage.
Right now, I’m stuck with a $5K hospital bill for a surgery that was not elective. Long story short, I broke my leg last year in a freak accident and had to have it fixed with hardware and 1 year later, the hardware was beginning to emerge from my skin and had to be removed.
I applied for financial assistance through the hospital but I missed the cut off by a few dollars, literally. The hospital will do a payment plan, but only on their terms. The entire balance has to be paid off in 12 months, so that makes for a huge payment. I just can’t after paying my rent, utilities, insurance, car, etc.
I’m just extremely stressed.
With regard to insurance choice: I would take the less expensive option on the health insurance. If you are paying $90/paycheck, but your employer is putting $70/paycheck into an HSA, it's really only costing you $20 a paycheck. The bi-weekly deposits add up to $140/month that you could put towards paying down the hospital bill or towards any new medical expenses you may incur while trying to deal with the hospital bill.
Bankruptcy is not free. There is filing fee of over $300 dollars and the attorney's fee. You could end up spending $1,000 and still have to pay at least a portion of the hospital fee. Still, talk to a bankruptcy attorney (first consultation is usually free and could be done over the phone). They may be able to contact the hospital and negotiate the debt down and longer payment terms by merely threatening them with filing bankruptcy.
I’m very worried though, if I end up having any other medical issues - I can’t just keep declaring bankruptcy over and over?
That, of course, is very true. I believe you can restructure debt under CH 13 as your circumstances change should you hit another bad patch. And I agree with Kara, it's a shame to consider bankruptcy for $5k.
Tight as your budget is, once you get through this, consider making additional payroll deposits to the HSA to build up that account so you can at least meet your deductible and copays. Deposits to HSAs are like deposits to an IRA - pre-tax. Ex: if you can manage to add $1k/year, you save $120 in taxes, so net cost to you is $880. Not huge, but it helps. Also, if you're subject state taxes in NC, you'll save on those, as well.
Also, hard as it is, can you possibly get a second job, a couple of nights or weekends? Waiters make pretty good money. Years back I was forced to take a second job, it about killed me - I only lasted a few months, but it helped. If nothing else, the extra job will help build up the HSA and an emergency fund. You really need to figure out a way to get ahead of the curve, because stuff happens.
Last edited by Ariadne22; 09-30-2019 at 12:36 PM..
I found out today, that the larger problem begins with the way the hospital system calculates a patients "expenses" at a default 6% of one's pay. My "expenses" are approx 29% after taxes and health insurance premiums. They will not re visit their formula as it is "set by an oversight committee comprised of doctors and UNC executives". Bingo. As I see it, that’s a conflict of interest. After all, who benefits the most? Doctors and execs.
I found out today, that the larger problem begins with the way the hospital system calculates a patients "expenses" at a default 6% of one's pay. My "expenses" are approx 29% after taxes and health insurance premiums. They will not re visit their formula as it is "set by an oversight committee comprised of doctors and UNC executives". Bingo. As I see it, that’s a conflict of interest. After all, who benefits the most? Doctors and execs.
Not sure what you are talking about, what "expenses?" Are you talking about the payment plan for the $5000 bill? Or getting some of it forgiven?
Of course the doctors and execs benefit, they are trying to get paid. I don't see that as a conflict.
Almost everyone has to pay medical and hospital bills over their lifetimes. Insurance doesn't cover everything, especially now with the huge deductibles that most policies have.
It's never fun or easy paying off an unexpected big bill, but we've all done it. Good luck.
Not sure what you are talking about, what "expenses?" Are you talking about the payment plan for the $5000 bill? Or getting some of it forgiven?
Of course the doctors and execs benefit, they are trying to get paid. I don't see that as a conflict.
Almost everyone has to pay medical and hospital bills over their lifetimes. Insurance doesn't cover everything, especially now with the huge deductibles that most policies have.
It's never fun or easy paying off an unexpected big bill, but we've all done it. Good luck.
Sorry, what I meant is - when figuring out charity assistance they use a 6% default figure, regardless of what your actual deductions are. Personally, mine are 29% after taxes and health ins premiums.
Is there even a 6% tax bracket?
In other words, gross income is calculated - minus 6% for “expenses” such as taxes, ins. My expenses exceed that x 5.
Last edited by vikesfanmb; 10-02-2019 at 10:30 AM..
Reason: Left out a portion of my reply
Can you ask your employer to lower your hourly wage by $1 or however much you are over the limit at the hospita
? Can you reduce your hours for a bit?
Maybe contact the local medicaid office to see if you can do a "spend down". I am not overly familiar with spend downs so cannot say much beyond that.
This is the reason I passed on the last raise. Too afraid it would put me over the limit if a serious health issue ever arose and I'd need the hospitals charity care, or at least enough time to pay it off. We can cover 2 deductibles of 5k but if it happens that it is a repeated issue, it could be shaky.
Can you ask your employer to lower your hourly wage by $1 or however much you are over the limit at the hospita
? Can you reduce your hours for a bit?
Maybe contact the local medicaid office to see if you can do a "spend down". I am not overly familiar with spend downs so cannot say much beyond that.
This is the reason I passed on the last raise. Too afraid it would put me over the limit if a serious health issue ever arose and I'd need the hospitals charity care, or at least enough time to pay it off. We can cover 2 deductibles of 5k but if it happens that it is a repeated issue, it could be shaky.
Best of luck to you
.
Thank you, I have tried all your suggestions and even offered the hospital a generous settlement - based on what my bank will approve me for. They rejected it. So I’m back to square one.
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