Although there’s plenty of good evidence that the ACA reduced medical bankruptcy, it doesn’t necessarily answer another question debtors might have: whether they can be denied treatment for filing bankruptcy. The short answer for emergency room visits is no, which I’ll discuss, but in other cases the answer might be yes.
For emergency care, debtors should be okay. In 1986, Congress passed the Emergency Medical Treatment and Labor Act (EMTALA), which requires hospitals to stabilize patients without regard to their ability to pay for those services. With the EMTALA in place, debtors shouldn’t worry about accidents, illnesses, or sudden events possibly resulting in their deaths because of their inability to pay. EMTALA also ensures care to patients irrespective of their citizenship or legal status. Hospitals that do not accept Medicare payments are exempt, but that’s exceedingly rare. The cost of emergency care to those who cannot pay comes out of hospitals’ budgets.
Outside of emergency situations, debtors might have poorer luck. Hospitals and clinics are allowed to discriminate against debtors who have a bankruptcy filing in their recent pasts. However, it’s uncommon for health-care providers to decline to treat these debtors out of hand. They may scrutinize bankrupt patients’ ability to pay and then make a determination. Some factors involved are whether the debtor has a low prospective ability to pay for the health care they need, the extent of the treatment needed, how expensive it is, and whether they discharged a debt owed to that clinic in the past.
Naturally, debtors who have health insurances will fare better. Health-care providers are much less likely to turn away insured debtors because the payment is guaranteed, but debtors should be aware that insurance does not cover everything. High deductibles and copays may make doctors visits no different than not having insurance at all. On the bright side, debtors protected by Medicare and Medicaid have little to worry about at all.
Debtors should also recognize that obtaining health insurance before bankruptcy is a sound decision. Doing so ensures they have some health-care protection, and it is a valid deduction in the means test calculations.
Finally, debtors who are concerned about maintaining their relationships with their physicians can always pay down discharged debts after bankruptcy if they’d like. Nothing stops them from doing so, but like any other creditor, physicians cannot pursue debtors for the unpaid amounts.
If medical bills or a serious medical condition complicate your bankruptcy, then consulting with an experienced New York bankruptcy lawyer can help you assess your options.
For answers to more questions about bankruptcy, the automatic stay, effective strategies for dealing with foreclosure, and protecting your assets in bankruptcy please feel free to contact experienced Brooklyn bankruptcy attorney Bruce Weiner for a free initial consultation.
