How do you plan for the unexpected?

You can take precautions. You can save and get insurance. But what if that’s not enough?

That’s the problem so many people face with their medical bills and medical debt. Even with medical insurance and a healthy savings plan, you could be put in a devestating spot if hit with tens of thousands of dollars in medical bills. Many people file Chapter 7 bankruptcy to help eliminate their medical bills.

But as details about new health care bills in Congress start to emerge, there are some encouraging signs, reports David Lightman for McClatchy newspapers.

Separate bills in the House and Senate would set a cap on annual out-of-pocket medical expenses. The limits, as they are in the bills now, would be around $5,000 for an individual and $10,000 for a family. Most medical costs would count towards this limit, says the story:

“Out-of-pocket expenses are expected to include co-payments for medical services and prescription drugs, deductibles and co-insurance.”

This type of regulation would be a welcome relief to people who find themselves owing tens of thousands of dollars in medical debt for reasons out of their control. Accidents and unexpected, unpreventable disease can ravage your financial life, too. And, sadly, insurance often doesn’t offer enough protection.

But, if the bills are passed as-is, everyone could get some protection. From the report:

“You get a lot of security for very little cost,” said Sen. Ron Wyden, D-Ore.

There are some loopholes, however. If you have a chronic or recurring disease you would most likely have to reach the maximum each year. Also, monthly premiums for insurance wouldn’t go towards the minimum cap, which means that the actual annual expense could still be upwards of $15,000 for some people.

The good news is these bills aren’t in their final stages yet, and you still have time to tell your elected officials how you feel.