Wednesday, March 31, 2010

Who Pays the Hospital Bills After a Relative's Death?

Hospital bills can be a serious burden -- even more so if the bills are incurred by an individual who dies. Survivors may be worried that they are liable for these bills, which can easily reach thousands of dollars if expensive surgeries or medications were involved in the medical treatment. In most cases, the surviving family does not have to pay hospital bills, but who does pay the bills can depend on a number of different circumstances.

Health Insurance

    Health insurance is available through both group and private policies and is designed specifically to pay hospital bills. In most cases, after the deductible has been paid, health insurance immediately kicks in and begins to pay for hospital expenses for the patient that has the policy. Depending on circumstances, health insurance may pay all or most of the bill until the relative's death. Health insurance companies may not cover expenses directly related to the death.

Auto Insurance

    Auto insurance may also pay for medical bills until the death of a relative. This occurs when the injuries are incurred during an automobile accident. The rules regarding which policy pays for the medical bills depends on the state and laws governing hospitals. It can take time for insurance companies to work out who is at fault in an accident -- and therefore who should pay off the bills. Hospitals, on the other hand, want to be paid quickly. Some states have laws that have auto insurance policies related to the car the injured person was in immediately pay bills regardless of fault.

Court

    When a person dies without a will, a probate court manages the estate and passes assets along to survivors. The probate court pays off any remaining medical bills from the estate. Liquid assets such as cash work best for this, but if necessary, the probate court may sell off other assets to meet the hospital bills, and then give the family possession of what is left. Expenses of last illness, as they are called, are typically in the middle of a list of debts that are paid according to priority.

Family

    Families, in most cases, are not responsible for paying the medical bills of a relative after he has died. This can be a confusing issue because creditors, who are often desperate to be paid, may call relatives and try to demand payment through aggressive tactics. However, family members are only required to pay bills if they cosigned on a loan or were previously responsible for the estate and had already spent some of the money for personal profit.

0 comments:

Post a Comment