[quote=Troubled Loner]They have depleted their IRA’s and pensions down to nothing, they can no longer pay the medical bills, and they are considering bankruptcy, but really don’t want to (they don’t feel it is right ethically).[/quote]
If they can display hardship to the insurance company, they should be able to settle the bills for much lower than their face value. Kinda like a short sale.
I have an uncle in a similar position. He had to have emergency bypass surgery while not covered by insurance. The total bill was $150k or so. He paid a very nominal amount each month – I think $50 – and eventually the company realized he wasn’t going to pay it off. He showed his financial situation, and the company settled for something like $5000 total.
As a side note to others, retirement accounts are protected against debt collectors. The worst thing you can do is deplete your IRA/401k paying bills.
