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Asked 10/7/2011

What if your insurance company goes bankrupt?

 
 
 
 
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Answer 1/1 - Submitted 4/1/2012

If your insurance company files for bankruptcy, there is usually a settlement with all of the outstanding bills that pays pennies on the dollar. Medical providers have the option of taking this as payment in full or attempting to recoup the full amount during the bankruptcy hearing. Either way, you would not be responsible for any of the medical bills that would hang in limbo from the insurance company.

The only way you would be responsible is if you saw a provider who was not contracted with your insurance company. If this was the case, you would have already received a bill from the provider, and the bankruptcy would have no impact on you being responsible for payment anyhow.

 
 
 
 
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