Debt is a familiar problem for most Americans. Among the three eldest living generations, the Baby Boomers, Gen X’ers, and Millennials, all three groups are vastly indebted as a whole. From credit cards to mortgages to student loans, most Americans in debt do what most Americans in debt typically do: they stop paying their bills.
Now the leading cause of bankruptcy in the United States, medical bills are one of the most common forms of debt many Americans stopped paying back. While many individual Americans are undoubtedly feeling the pain that the burden debt often brings, Americans aren’t the only ones who are suffering.
How Debt Impacts Most Americans
Diagnosing hospitals’ debt woes is a lot simpler than meets the eye. Most medically indebted Americans didn’t choose their medical debt; their medical debt chose them.
Accidents that result in helicopter or ambulance transportation incur astronomically high medical bills. Staying in the hospital and receiving treatment are additional costs, and assuming a patient survives treatment, follow-ups and medication can also rack up hefty bills.
When low and middle-class Americans are afflicted with costly treatments and transportation, many can’t pay and eventually file for bankruptcy. On the back-end, this means that hospitals and treatment centers still have to drain their coffers in order to pay for the staff, medical treatments, and upkeep ambulance services require.
Reform and the Increase of Debt for Hospitals
Rarely thought of in the context of rising medical costs and skyrocketing debt, many hospitals are struggling to stay atop their own financial obligations as many patients simply won’t or can’t pay back what they owe.
Ironically intended to bring a solution to this multifaceted issue, insurance reform in America was supposed to solve the problem, not exacerbate a rapidly expanding crisis. When asked, the majority of healthcare providers blame two critical missteps:
- Underestimates of Coverage in 2015: In 2015, the health insurance industry as a whole suffered a massive blow. Many companies underestimated the number of claims they would have to cover, resulting in a whopping $3 billion gut-punch that many companies are still struggling to resolve.
- The Affordable Care Act: Due to rising medical costs and massive amounts of uninsured Americans, notably those with pre-existing conditions, Americans clamored for health insurance reform over a decade ago. In a landmark decision, the implementation of the Affordable Care Act, more commonly known as “Obamacare,” worsened the debt situation for most insurance companies as they were forced to cover higher-risk Americans. The move forced companies to increase deductibles, raising costs for most Americans.
Desperate to reclaim their debt, many health insurance companies and hospitals have sought the services of third-party collections agencies, many of whom overstep their boundaries to collect by any means necessary.
We Can Make Medical Debt Collectors Stop
If you’re one of the countless Americans being harassed by debt collectors over medical debt, you’re not alone. At the Law Offices of Jibrael Hindi, we have experience helping countless individuals in South Florida seek rightful compensation for harassing calls, and we are confident we can do the same for you.
Under the Telephone Consumer Protection Act ( TCPA), telemarketers have specific protocols that must be followed when attempting to collect a debt. It’s very likely you have been the victim of TCPA violations, and if so, you may be entitled to compensation. Depending on your case, you may be entitled to upwards of $1,000 in compensation.
Call us at 1-844-542-7235 or complete our contact form to schedule a free consultation.