Medical Debt Collection cancel union insurance?

My boyfriend is a working union member in Alaska. My question is can his health insurance be deiend if he has past over due bills from a hospital. I believe he has been contacated by a debt collector already for these medical bills. If so should he contact the debt collectors or the insurance company to get it worked out?

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Apr 19, 2012
by: Anonymous

Thank you for your tim.

Apr 19, 2012
Medical Debt Collection cancel union insurance?

If your boyfriend has insurance through his union, I do not believe that his coverage can be cancelled because he has some past due medical bills.

If he has been contacted by a debt collector about some of those bills, he needs to get in touch with the collector because the hospital has hired it to try to collect the money your boyfriend owes. It's important that your boyfriend not ignore the debt because if he does not pay it, he may end up being sued for the money and if he loses the lawsuit, his wages may be garnished, money may be taken out of his bank account or a lien may be put on an asset he owns.

If your boyfriend cannot pay what he owes in a lump sum, the collector might be willing to let him pay his debt over time or the collector might let him settle his debt -- wipe out the balance for less than the full amount. If your boyfriend works out either or these arrangements with the collector, he should be sure to get all of the terms of his agreement in writing before he pays any money on it.

Another option if your boyfriend cannot pay what he owes and he is unable to work out a payment plan or settlement is to file for bankruptcy. Bankruptcy will wipe out his medical debt. However, filing is a big step that will have major ramifications for your boyfriend's credit history. Of course, if he has debts in collections then his credit history is already damaged and it will be damaged even more if he is sued for the money he is owed. By the way, if he is sued, filing for bankruptcy will halt the lawsuit. Go here to find out how to file for bankruptcy. And, your boyfriend should go here if he wants to schedulea free initial evaluation with a bankruptcy attorney.

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