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Medical Debt Crisis in The States: Hospital Sues Patient for Cancer Treatment Costs

Medical Debt Crisis in the U.S.: Hospital Sues Patient Over Unpaid Cancer Treatment Bills

Hospital sues a patient for not paying the bills on time

Terry Belk, a 68-year-old resident of Charlotte, North Carolina, is grappling with the heavy burden of medical debt stemming from his late wife’s battle with breast cancer and his own prostate cancer diagnosis. Despite having health insurance, the costs associated with their treatments exceeded what he could afford, leading to a series of financial struggles. In 2022, Atrium Health, the nonprofit hospital that provided care, filed a lawsuit against Belk for approximately $6,000 owed for his prostate cancer treatment. Faced with the reality of the legal system and the escalating debt, Belk felt he had no choice but to agree to a repayment plan, which has since grown to nearly $8,000 due to interest.

Terry Belk and his tragic story of medical debts

Sandra, the devoted wife of Terry Belk, passed away in 2012 following a protracted fight with breast cancer. Even with health insurance, the car salesman in Charlotte, North Carolina, was unable to cover the costs of his wife’s medical care after he left his job to care for her. To make matters worse, he was told he had prostate cancer that year, which led to more expenses for his own care.

The nonprofit hospital that treats the Belks, Atrium Health, vigorously pursued them for their debts. Belk said that he signed a deed of trust under which the hospital will get about $23,000 when he sells his house, which will pay the remaining balance due for his wife’s medical care, without fully comprehending the ramifications. He said, “We weren’t attempting to evade paying the bills. “I tried to pay, but I was unable to.”

It went on from there. Belk was sued by the hospital in 2022 for the remaining sum of around $6,000 that he owes for treatment of prostate cancer. Belk said that he decided to settle the debt, which has increased to about $8,000 plus interest, since he was aware that he would not prevail in court. Belk claimed that in order to reduce it and deter bill collectors, he pays $100 a month.

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When asked about his medical debt, Belk, 68, stated, “I’ve been battling this for over 20 years.” “I feel like I’m dragging this anvil around every day, like it’s an albatross around my neck.”

The medical debt crisis is at its peak in America

According to KFF, a nonprofit that conducts reporting, polling, and health policy research, Americans owe at least $220 billion in medical debt. According to KFF, the top three states for medical debt are North Carolina, home to Belk, at 13%, Mississippi at 15%, and South Dakota, where 18% of the population is impacted. Medical debt has been a contentious subject in the 2024 presidential race and has contributed to voters’ financial distress.

According to Berneta Haynes, senior attorney of the nonprofit National Consumer Law Center and an authority on the subject, medical debt is a “problem that is uniquely American.” “Every time you schedule an appointment, even with insurance, you are increasing your risk of accruing medical debt if you have long-term health issues that necessitate frequent interactions with the healthcare system.”

When asked about Belk’s circumstances, an Atrium Health representative stated that the company has filed lawsuits against individuals “as a last resort.” According to the spokesperson, Belk signed the other judgment and the deed of trust willingly, “and presumably on the advice of his attorney.”

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“As the leading, nonprofit health system in the Southeast, Atrium Health works to ensure access to high-quality care for everyone in each community we’re privileged to serve,” the Atrium spokesperson added in a statement. For us, there are only results—better health, increased hope, and faster healing—for everybody. There are no profits.

Scamming people with incorrect bills

According to National Health Expenditures data, about 18% of our country’s gross domestic product is allocated to health care, which is significantly higher than in other industrialized nations. Approximately one-third of these funds are spent on hospital care.

According to a 2019 study published in the American Journal of Public Health, medical bills are a major cause of bankruptcy in the United States, which should come as no surprise given the high costs. Due to state governments’ frequent opposition to Medicaid expansion, residents of the Southeast have been particularly severely impacted by medical debt.

One of the provisions of the Affordable Care Act requires nonprofit hospitals to provide financial help programs to people who cannot afford medical care. However, experts claim that patients aren’t usually informed about these initiatives. The difficulty in understanding hospital or healthcare bills—which are frequently inaccurate—exacerbates the problem of medical debt, according to Cynthia Fisher, the founder of PatientRightsAdvocate.org, a nonprofit organization that promotes price transparency in the healthcare industry.

Fisher’s organization said to NBC News, “We have not yet had an accurate bill,” despite regularly analyzing patient records. Inaccurate invoices are a major issue, according to a recent study by The Commonwealth Fund, an independent research group that focuses on health care. According to the study, almost 45% of American adults report receiving a medical bill that they were shocked to learn was not covered by their insurance. According to the report, a significant number of respondents did not object to the bills; nevertheless, 38% of those who did so wanted them changed or removed.

The health insurances are of no help

52-year-old Darcy Guill had emergency hernia surgery in 2023. Later that year, she received a $4,000 charge from the hospital for the portion her plan did not cover, even though she had health insurance through a marketplace plan. Guill, a multiple sclerosis sufferer, resides in the rural town of Aiden, North Carolina, which is located just south of Greenville. She claimed to be paying the amount with about $123 every month.

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She remarked, “I didn’t ask to have a hernia.” “I was an elementary school teacher once, and I haven’t had a lot of money lately.” Guill expressed her gratitude in particular for North Carolina’s recent expansion of Medicaid coverage for its citizens, which she may now take advantage of. She assists her neighbors in obtaining Medicaid by volunteering with Down Home North Carolina, a nonprofit organization. “Many people in the state have medical debt because their insurance plans did not pay for their medical expenses,” the speaker stated. 

The Urban Institute’s 2021 study, which discovered that three of the top 10 U.S. counties had citizens with medical debt, supports Guill’s point of view. According to the survey, almost 40% of people in those areas had medical debt, compared to 13.9% of people nationwide.

According to Harold Miller, president and CEO of the Center for Healthcare Quality and Payment Reform, recent hospital mergers in the state have reduced competition across facilities, meaning that citizens of North Carolina bear a disproportionate amount of medical debt. He claimed that as hospitals merge, the cost of care rises due to their greater market strength, particularly in rural areas. “Price increases occur when hospitals merge,” he stated.

High interest rates only add to the load

North Carolina regulations that let hospitals to sue patients for medical bills with up to 20-year court judgments add to the load. Furthermore, those judgments instantly become liens against the homes of the sufferers and may have interest rates as high as 8%. “There’s a whole cascade of consequences when you have medical problems,” attorney Ed Boltz, who defends individuals in North Carolina facing medical debt lawsuits, said. “It pushes people over who have been hovering on the verge of collapse. Individuals eventually lose their houses.

According to a recent analysis by faculty at Duke University School of Law and the Office of State Treasurer of North Carolina, from January 2017 to June 2022, hospitals in North Carolina sued 7,517 patients and their families in order to collect medical debt. Interest and other additional fees accounted for an astonishing 35 percent of the $57.3 million in total judgments owed by patients as a result of numerous legal actions that ended in default judgments in state district courts.

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Barak Richman, a visiting professor of law at George Washington University Law School and study researcher, said, “Part of what we’re seeing is a real court failure where inaccurate bills are automatically compounding themselves and wreaking financial havoc on patients.” Sara Sternberg Greene, a professor at Duke Law and one of the study’s researchers, added that Belk’s experience presents another issue for patients who are being sought after. Many of these individuals, according to her, qualified for charity care but were not given it. 

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Written by Nidhish Waghmare

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