Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709
${site.data.firmName}${SEMFirmNameAlt}

Confusing medical billing systems, pt 2: cutting the knot of debt

In ancient Greek legend, the Gordian knot was akin to the sword Excalibur in the Arthurian legends. According to prophesy, anyone who could untie this incredibly intricate knot was destined to rule all of Asia.

Alexander the Great cut the knot with his sword - or so the story goes. It's an action that, in its utter simplicity, still has much to teach us.

In this post, then, let's continue our discussion of the twisted knot of medical bills that plague many people. It is fair to ask the question: Is filing for bankruptcy a way to cut the tangled knot and move forward toward debt relief?

As we noted in our March 12 post, there are many reasons why medical bills don't get paid and become medical debt.
• The bills themselves are so high, even for comparatively simple procedures.
• Medical professionals tend to bill separately, resulting in multiple bills.
• Computer-generated bills are sent out without any human thought.
• The role of insurance companies is often unclear, creating confusion about which bills are covered by insurance and which are not.

As a result, many Americans have medical debt that gets reported to credit bureaus and harms their credit ratings.

The scope of the problem is of concern to federal authorities. The Consumer Financial Protection Bureau's director has noted that 1 in 5 Americans has had their credit rating impacted by medical debt. And medical bills have become the biggest single source of business for collection agencies.

One Wisconsin man who filed for bankruptcy a few years ago told the New York Times about how difficult it was, with so many bills floating around, to know how much his family owed.

In short, if you are in need of relief from medical debt, don't despair. You have lots of company, and bankruptcy can be a good way to seek a fresh start.

Source: The New York Times, "When Health Costs Harm Your Credit," Elisabeth Rosenthal, March 8, 2014

No Comments

Leave a comment
Comment Information
Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Appleton Office

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Office

Glendale Office
6001 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.