Critical Illness Needn't Hurt Your Bank Account, Too
Could your heart attack, cancer, or stroke hospitalization actually bankrupt you? It could, and for many people it does. But it doesn't have to be nearly as devastating as it sounds.
You can find out if you're eligible for Medicare coverage after a critical illness with the help of this blog post. We'll also show you how to avoid bankruptcy-worthy expenses by reviewing certain types of insurance that might be less known but can provide crucial financial support in the event of an unexpected health crisis.
What is a critical illness?
The NHS defines a critical illness as "a serious condition which is expected to result in death within 28 days (or within 46 days if your condition is likely to lead to long-term disability)." It occurs when byproducts of the body's natural processes, referred to as endogenous (self) or exogenous (external triggers), are brought out of function.
What's the point? Why look into this at all?
People who have never suffered a critical illness can't help but find it unsettling, even scary. It sounds like something that only happens to other people -- and that's exactly what they were taught in medical school. But a critical illness can strike anyone, regardless of age, gender, race, or geographic location. In fact, 3 out of 10 people will suffer a critical illness in their lifetime.
When you realize that your own life could be at stake in an instant and consider how it might affect others you care about (including your spouse or children), it's hard not to think about it. It's even harder when doctors warn that the odds of suffering a stroke are greater than 50:50 after the age of 65. And on top of those statistics is another intriguing one -- one out of every four deaths that occur in the United States is the result of a disease for which there was no known treatment 15 years ago.
What kinds of treatments are available?
Here's where things get interesting. In a perfect world, you'd have excellent insurance and a portion of your medical expenses would be covered 100 percent. Unfortunately, that's not always the case, and most people who are uninsured or underinsured don't realize it until they actually fall ill.
Luckily, there are some options out there that let you pay for critical illness hospital stays even if you're uninsured. Here are a few:
Critical Illness Insurance Policy (aka CII) -- this insurance is designed to fill in the gaps and provide protection against costly medical expenses resulting from an unexpected critical illness or injury that falls outside of any existing health coverage. Payments for hospital stays, surgical procedures, and prescription drugs are usually covered under this type of plan.
Cost Reimbursement with Critical Illness (aka CRIC) -- this is a relatively new type of policy that helps pay medical expenses in the event of critical illness by covering 100 percent of non-emergency medical costs related to care provided in a hospital or other facility within 30 days after injury or illness.
Cost Sharing with Critical Illness (aka CSSI) -- this is also a newer form of insurance that helps cover critical illness expenses by sharing the financial burden at its issuer's expense. It's most often available for residents of Canada.
What kinds of expenses are usually covered?
It depends on which type of insurance you have, but most provide financial assistance with the following:
Hospital bills and outpatient expenses -- this includes diagnostic tests, surgeries, and procedures. It also covers the cost of physical therapy, home health services, durable medical equipment like wheelchairs or crutches. In some cases, depending on your limits and policy details, you can get help with hospice care or assisted living services related to critical illness. If a family member dies as a result of your illness/injury, your policy may pay for funeral costs and even cremation (in the case of body donation).
-- this includes diagnostic tests, surgeries, and procedures. It also covers the cost of physical therapy, home health services, durable medical equipment like wheelchairs or crutches. In some cases, depending on your limits and policy details, you can get help with hospice care or assisted living services related to critical illness. If a family member dies as a result of your illness/injury, your policy may pay for funeral costs and even cremation (in the case of body donation). Prescription drugs -- following an inpatient stay that's covered by the policy, you can get help with purchasing needed medications.
-- following an inpatient stay that's covered by the policy, you can get help with purchasing needed medications. Emergency care -- this covers things like emergency room fees, transportation, and medical supplies such as bandages, syringes or catheters.
-- this covers things like emergency room fees, transportation, and medical supplies such as bandages, syringes or catheters. Extended hospital stays -- sometimes you have to be hospitalized for a good amount of time before your situation can improve enough for your condition to become stable enough for you to be discharged home. In some situations, you may need extra stays to overcome a setback caused by the critical illness itself.
How long can they help last?
That depends on the type of policy you have. Before you sign up, make sure to ask about the duration of coverage -- but also ask yourself what would happen if you had to file a claim or apply for benefits as a result of a second hospital stay that's not covered by your policy. If it's anything other than "no claim bonus," then it's probably worthwhile to investigate further.
If you're insured, critical illness insurance is a great way to protect yourself and your loved ones from financial hardships in the event of a catastrophic illness. Another way insurance can help is by paying for future medical expenses, which may come with limited coverage (such as disability insurance). With the right combination of health care coverage and an emergency savings account, you can easily ensure your financial security even if your employer doesn't offer a health plan or your company is unable to continue paying for it. What are you waiting for? Get your free no-obligation, comprehensive insurance quote online now!
Sources:
"The statistics on what happens to sick people – especially older people – when they get sick, are very sobering. The odds that a 65-year-old white man will die of any cause in any given year ... is about 1 in 5. For African Americans the number is 1 in 6." "No Coverage Is Not an Option," by Henry J.
Conclusion
We've just touched on a few of the most common problems with our health care system and how they're negatively affecting consumers. With everything from prescription drugs to medical services costing way more than they should, it's no wonder so many people are struggling to cover their medical bills. If you're in a position where you can't afford your prescriptions -- or the copays required to continue seeing your doctor -- know that there IS help out there for you ... but it may not be easy to get.