I'm on Medicare but recently declared bankruptcy due to medical bills. How will this affect my coverage and options going forward?
Answered by 9 licensed agents
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.
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.
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.
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.
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!
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.
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.
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.
