Medical emergencies and late payments

Anonymous · ‎01-25-2018

Oh, I definitely do believe that some folks do end up with horrifying emergencies that no amount of planning can prepare for.

But one can not plan or prepare for the 0.1% of outliers. The vast majority of people with medical emergencies causing debt are folks who would have been A-OK had they just planned for 3 or 6 months without income. In my studies and research, 85% of folks would have been in great shape with 3 months income, and maybe 90-95% with 6 months saved. The other people still count as 1 in 20, but the $450,000 emergency medical treatment doesn't happen to even 1 in 20. Maybe 1 in 1000 or even fewer.

So for the supermajority, the fault is unfortunately on the believe that nothing bad will ever happen so it's totally fine to blow $300 a month on cable and dining for years.

I was in that group, too. Many times. Life feels good, why save.

arkane · ‎01-25-2018

Again, this isn't a budgeting or medical bills problem. I'm specifically asking what happens when someone becomes incapcitated to the point that even if they're 100% able and willing to pay all their bills, they can't because they were stuck in a hospital bed for a number of months -- what happens to the inevitable 30/60/90/whatever day lates then?

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Kree · ‎01-25-2018

Theoretically everyone should have someone listed as having power of attorney in case of medical emergencies. That person should then be able to contact creditors on the behalf of the medical emergencied person and arrange payments. Sometimes family members can get temporary power of attorney assinged to them through the court systems if a need is shown.

Sadly, these things require proactivity and do not help someone after the fact. But it brings up something rarely discussed in emergency plannning. Wills and Power of attorneys.

joltdude · ‎01-25-2018

@arkane wrote:
Again, this isn't a budgeting or medical bills problem. I'm specifically asking what happens when someone becomes incapcitated to the point that even if they're 100% able and willing to pay all their bills, they can't because they were stuck in a hospital bed for a number of months -- what happens to the inevitable 30/60/90/whatever day lates then?

Had this exact scenereo happen to an acquaintence... Guess what... All the utilities did remove the lates once the payments were caught up.... Cable did with a bit of coaxing... and actually found him a cheaper package to boot... NFCU did as well.... Seriousness aside... I think even with a savings .. and Im not a fan of autopay either (though it can help some folks avoid this scenereo sometimes)... many creditors will work with you if you seriously are hospitalized for a few months... as long as can pay them current....

-J