Perform a Preventative Health Insurance Check Up: MMI provides tips for ensuring you have adequate coverage.

HOUSTON -- As health care costs continue to escalate, even families with health insurance are feeling financially pinched. According to a study done by Harvard Law School and Harvard Medical School, illness and medical bills are the leading cause of roughly half of the personal bankruptcies filed. This is not a surprising statistic considering that Americans spent nearly 2 trillion dollars on health care costs in 2005, nearly $6,700 per person.

Medical debt can quickly become overwhelming and can challenge even the best financial plans and budgets. Fortunately, adequate health care coverage will ensure that your family is prepared for illness or injury. The experts at Money Management International offer the following tips on how to make sure your health insurance coverage is up to par:

Does your plan cover pre-existing conditions? Sometimes, a plan may not cover treatments for an ongoing medical condition. Find out if there are limitations or a waiting period involved in your coverage.

Is the coverage sufficient? Find out exactly what services are covered and learn what preventive services are offered. Ask if there are limits on medical tests, out-of-hospital care, mental health care and prescription drugs.

What does it cost? Research your premiums and co-payments. Explore the difference in cost between using doctors in the network and those outside it. Find out if there is a limit to the maximum you would pay out-of-pocket.

What are my other options? Even if your current insurance plan seems to be adequate, it might be wise to review all of your options. There are many types of coverage, such as HMOs, PPOs and fee-for-service. Many people are also able to get group insurance through membership in a professional association, club or other organization. You might also look into individual insurance options.

"Most importantly, do not allow your insurance to lapse," said Cate Williams, vice president of financial literacy for Money Management International. "Medical bills for an accident when you lack coverage can be far more devastating than the cost of paying for your own insurance for several months."

Unfortunately, the number of people who have no health insurance coverage is growing. According to a U.S. Census Bureau report, there are now 46.6 million uninsured U.S. residents.

If you become unemployed and lose your coverage, you may have the right to extend your coverage through COBRA (for the Consolidated Omnibus Budget Reconciliation Act of 1985). The government also offers programs, such as Medicaid, for people with low-incomes. Also check with your local state government about health insurance programs for adults and children.

About Money Management International

Money Management International (MMI) is a nonprofit, full-service credit-counseling agency, providing confidential financial guidance, financial education, counseling and debt management assistance to consumers since 1958. MMI helps consumers trim their expenses, develop a spending plan and repay debts. Counseling is available by appointment in branch offices and 24/7 by telephone and Internet. Services are available in English

or Spanish. To learn more, call 800-762-2271 or visit www.moneymanagement.org.