Indiana Bankruptcy Blog

Medical emergencies can create large, unexpected debts.  Sometimes medical debts can even cause bankruptcy.  It is important to plan for medical emergencies after filing for bankruptcy.   Unexpected medical bills can be controllable by the following planning tips.

Planning Tip #1: Acquire Medical Insurance

Medical insurance is the most powerful way to plan for unexpected medical costs. Although traditional medical insurance can be difficult to afford, nothing compares to it’s ability to protect you from unexpected medical costs.  Medical insurance may be possible with employer and local programs and should be pursued if at all possible.

Planning Tip #2: Medical Costs Sharing Plans and Other Forms of Protection

Medical cost sharing programs are becoming more widespread throughout the United States as a response to increasing insurance costs.  These programs require monthly contributions and operate in function very similar to medical insurance.   The cost savings can be enormous.

Also, there are many medical discount plans for medical and prescription costs.   Whatever program you enter, make sure to investigate the past reliability of the program.  Personal referrals and research may be required to determine if the program is sufficient for your needs and worthwhile.   Some programs may prove to be a cost-effective alternative to traditional insurance in some cases.   

Planning Tip #3: Medical Savings Account

If you have a medical insurance or similar program that requires a annual deductible, you may be qualified to use a medical savings account.   These special medical savings accounts offer two benefits.  First, automatic contributions to the account provide an easy system to save for unexpected medical costs.  Secondly, the taxing authorities will require income tax to be paid on amounts contributed to the account.  Talk to your employer or a tax professional to see if you qualify for a medical savings account.