Medical treatment is expensive, even for those who have insurance coverage. It can catch many people by surprise to learn that even though they have insurance, their doctor or hospital visit resulted in expensive medical bills. Through certain types of billing practices, Louisiana insurers can deny coverage and leave their customers with debt they cannot manage on their own.
For some consumers, medical bills end up leading to a bankruptcy filing. One reason this happens is through retrospective denial, which is when an insurer gives approval for a procedure and then revokes it later. The company has the ability to determine that tests, procedures and other medical needs were not actually necessary, and therefore, they do not have to cover it.
This is a loophole in the way insurance companies operate, and it can quickly devastate those individuals who have insurance, regular paying jobs and savings. Another method an insurance company may employ is not requiring prior approval for a procedure or test, only to state later that approval was necessary. This allows the company to place responsibility for the bill on the patient. These are only some of the ways that make it clear the health insurance system is solely concerned about profit above all else.
When a Louisiana resident is no longer able to manage his or her medical bills, bankruptcy can be a reasonable way to address the issue. This process allows a consumer to get rid of certain types of balances and emerge from the process with a better financial future in sight. While bankruptcy is never a person’s first choice, it is often a beneficial manner by which to address an overwhelming financial situation.