I'm on Medicare but recently declared bankruptcy due to medical bills. How will this affect my coverage and options going forward?

Question

Norman Smith · Accepted Answer

I’m sorry to hear that. And good luck.
Medicare itself has no credit rating or change in coverage due to BK. But as long as you continue to to make your Part B payments your Medicare will continue to on.
My suggestion is to try to find at least a High Deductible Supplement plan that allows you to keep your Doctor choices and limit the amount of responsibility that can come back to you. If you hadn’t accepted a Medicare Advantage Plan, do not worsen your situation financially with a plan that will control you and your health moving forward. 
You can work through Bankruptcy. You can’t work through not allowing yourself the control and freedom that you would then give up on your health by taking an Advantage plan.

James Carlson · Answer

Make the monthly premium payment and the policy will not be any different.
The policy is not effected by your financial issues, as long as premiums are paid.

Michael Ferraro · Answer

Bankruptcy does not affect your Medicare status. However not paying your premiums on your med-sup or Medicare Advantage plan will. If you declare bankruptcy, continue to pay your premiums and you will be in good shape.

Answered by Michael Ferraro on June 12, 2025

Agent Licensed in NY

Answered by Michael Ferraro Medicare Insurance Agent

Steven Bleicher · Answer

Should you apply for Medicaid, as long as you’re also on Medicare, there is a tremendous benefit in applying for a “SNP” or Special Needs Plan. This unique plan will help you get everything medical completely paid for! It provides you with hospital benefits, Dr. visits & treatment, medications, therapy, etc., etc. for free! Should you have some money set aside & do not qualify yet, you will be advised to perform a “spend-down” of your assets until you can qualify for Medicaid. Make an advanced appointment with your SSA office, asking them how you can go about doing that spend-down.

Answered by Steven Bleicher on June 8, 2025

Broker Licensed in AZ

Answered by Steven Bleicher Medicare Insurance Agent

Diana Garner · Answer

Declaring bankruptcy because of medical bills doesn't mean your insurance coverage will be terminated. It can, however, affect how Medicare handles your outstanding debts and potentially open up new avenues for financial assistance.

Answered by Diana Garner on June 4, 2025

Broker Licensed in KY, FL, IN, OH & TN

Answered by Diana Garner Medicare Insurance Agent

Bill Wheeler · Answer

Generally, filing for bankruptcy does not directly impact your Medicare benefits. You will still be eligible for Medicare coverage and benefits

Cathy Barnett · Answer

Bankruptcy shouldn’t affect your medicare coverage. Feel free to contact me and we can go over options to find out what plan to add with your medicare coverage. Some plans have an out of pocket maximum that should keep you from having the same problem with medical bills.

Answered by Cathy Barnett on June 10, 2025

Broker Licensed in TX, AL, NC & SC

Answered by Cathy Barnett Medicare Insurance Agent

Bill Zeky · Answer

Your Medicare enrollment is not affected by your credit, current or past. More importantly I'd like to help you find out why your current coverage left you so exposed to your medical bills.

Maureen McKenna · Answer

You may have to file an appeal for your cost of Part B with SSA. You may now be eligible for MediCaid. You may be elgible for Medi-Medi plans if you are approved for MediCaid. Best option is to consult a dedicated Medicare Agent that will understand your needs and can guide you through the process.

Answered by Maureen McKenna on April 3, 2025

Agent Licensed in CA, AZ, CO & 19 other states

Answered by Maureen McKenna Medicare Insurance Agent

Fred Manas · Answer

Declaring bankruptcy due to medical bills generally won't directly impact your Medicare coverage or eligibility for benefits. You'll still receive the same coverage under Medicare. However, it's important to understand how the bankruptcy might affect Medicare's financial obligations, particularly in Chapter 13 where you have a repayment plan. 
Here's a more detailed breakdown:
No Change in Coverage:
Your Medicare benefits and eligibility remain the same. You'll still be able to access covered services. 
Chapter 13 Repayment Plans:
If you're in a Chapter 13 repayment plan, ensure you understand how your plan will handle medical bills and associated debt. 
Notification to Medicare Administrative Contractor (MAC):
Notify your MAC about the bankruptcy filing, even if there are no outstanding payments at the time. This helps them process your situation correctly. 
Financial Assistance and Payment Plans:
If you are having difficulty paying your medical bills, explore options like financial assistance, charity care, payment plans, and consider utilizing a medical credit card. 
Medical Debt Discharge:
Under Chapter 7 bankruptcy, medical debt can be discharged, meaning you may not be required to pay it back. However, certain debts like child support and most student loans are not discharged. 
Credit Impact:
Bankruptcy will negatively impact your credit score for several years. 
In summary: While bankruptcy can impact your credit and finances, it won't directly alter your Medicare benefits or eligibility. It's crucial to inform Medicare and explore financial assistance options to manage your debt.

Vachik Chakhbazian · Answer

generally won't directly impact your Medicare coverage, but it can affect how you handle pre-existing medical debt and future medical expenses. Medicare benefits typically remain unchanged during and after bankruptcy, and you'll continue to receive the same coverage. However, you are still responsible for new medical bills incurred after filing for bankruptcy.

Answered by Vachik Chakhbazian on May 12, 2025

Agent Licensed in CA, AL, AR & 22 other states

Answered by Vachik Chakhbazian Medicare Insurance Agent

Marcie Barnes · Answer

One has nothing to do with the other.   It could cause issues with providers you were seeing, but doesn't effect your coverage

Toni Chavez · Answer

Thanks for your question!

This should have any affect
On your medicare Part A & Part B.  
Just remember you must always keep these active.
 
You may or may not know this if your running into financial hardship there are several programs available to medicare eligible beneficiary depending on income that’s can help lower drug costs and deductibles. Also medicare Savings Program can help you Part B.

I recommend speaking to a licensed broker who can guide you on the available programs.

Jaye Maxx Alexander II · Answer

The fact that you had to declare bankruptcy due to medical bills will have no bearing on your ability to get a MAPD, MA, Medicare Supplemental coverage, and Part D coverage. You can get assistance from an agent with many years of experience.

Answered by Jaye Maxx Alexander II on May 13, 2025

Broker Licensed in NC, AK, AL & 47 other states

Answered by Jaye Maxx Alexander II Medicare Insurance Agent

Larry Pereiro · Answer

There is no affect, Medicare is guaranteed issue coverage do long as you have original Medicare Parts A and B and live in the area you are seeking coverage in.

Mel Stevens · Answer

In regard to claiming bankruptcy, Medicare coverage will remain intact. If you have a supplement that requires a monthly premium you are still responsible for making the premium payments or the policy could lapse. If the supplement payments are creating a financial strain, there are other zero Medicare Advantage options available. In addition, depending on income, there may be some extra help available to assist with paying for the Part B premium and lowering the cost of prescription medications. Also depending on Income, Dual Medicare / Medicaid plans available which offer some extensive benefits such as an additional food card.

Answered by Mel Stevens on April 15, 2025

Broker Licensed in AZ

Answered by Mel Stevens Medicare Insurance Agent

Robert Remin · Answer

This answer is provided in a video format. Watch the agent's video response here: https://medicareagentshub.com/questions/medicare-coverage-after-medical-bankruptcy#robert-remin

Chris Prang · Answer

I've never known a bankruptcy to affect the possibility of getting coverage. Certainly it doesn't affect Original Medicare. And I've never seen on an application for a Medicare Supplement, Medicare Advantage, or Part D drug plan, any question related to bankruptcy, owing money, collections, and/or party to a lawsuit. 

The only possible way I see is if you defrauded Medicare or an insurance company. 

I hope that helps.

Brianna Douros · Answer

Your coverage is going to remain the same regardless of your current financial situation. I'm not sure what king of policy you may have, whether it be original Medicare with a pdp, possibly a supplement or even a Medicare advantage plan- but those things are not going to change. However, I'm not sure if you were in a higher tax bracket and paying more for your part A or B premium, as that cost may change if so. I'm also not sure of your current income, but it could be possible that you are eligible for Medicaid or even extra help through Medicare. Medicaid is income based and state specific. If qualified, it may help pay some or even all of your Medicare premium and even pick up some of the gaps Medicare doesn't cover. If you are not eligible for Medicaid, you may be eligible for extra help through Medicare. You can apply for extra help on ssa.gov. Best of luck!

Answered by Brianna Douros on April 29, 2025

Broker Licensed in VA, CO & TX

Answered by Brianna Douros Medicare Insurance Agent

Dan Green · Answer

Unfortunately, this is a reality. Having a "Zero Cost" Medicare Advantage plan gives a Medicare recipient a false sense of security in some cases. Too many people don't plan for that 5 day $325/ day hospital stay with a bunch of tests while in the hospital, putting them in a tough financial situation. I always want to know if a Medicare recipient has planned for a bill similar to the scenario listed above. A discussion about the possibility of adding another plan to cover these bills may be necessary.

Answered by Dan Green on April 8, 2025

Broker Licensed in NC

Answered by Dan Green Medicare Insurance Agent

Calvin Fritz · Answer

While bankruptcy can be a challenging experience, it shouldn't directly affect your Medicare coverage. Medicare is a federal program, and being on Medicare isn't contingent on your financial situation, including bankruptcy.

Answered by Calvin Fritz on April 8, 2025

Broker Licensed in MO, AL, AR & 22 other states

Answered by Calvin Fritz Medicare Insurance Agent

Rodrigo Ferrer · Answer

Medical debt is a leading cause of bankruptcy in our country. A bankruptcy on your record wouldn't impact your coverage or options going forward. You would have and retain the same rights as any other person on Medicare.

Answered by Rodrigo Ferrer on May 26, 2025

Broker Licensed in CT

Answered by Rodrigo Ferrer Medicare Insurance Agent

Kilolo Thomas · Answer

Hi!  In general, filing bankruptcy does not impact Medicare eligibility, however, if your financial situation has changed, you may want to explore what Medicare plans are available that may be a better fit for your current situation. For me to help, I would need to know a little more about you.  Feel free to send me your Medicare number, Date of Birth and zip code and I can see what your options are. 
Look forward to helping you!
Kilolo Thomas
609-331-9916
Kilolo@pearlbenefitssolutions.com

I'm on Medicare but recently declared bankruptcy due to medical bills. How will this affect my coverage and options going forward?

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I'm on Medicare but recently declared bankruptcy due to medical bills. How will this affect my coverage and options going forward?

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