Quote:
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he cashed in his health insurance in order to be able to cover medical bills
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There appears to be a massive gaping hole in this story, since employer health insurance is pre-tax out of your paycheck, private health insurance is quarterly payments, and medical bills under insurance will never be higher than the deductable. There is no such thing as a medical savings account here. If he had insurance, and didn't make a ridiculous error such as taking a $5000 deductable, the insurance bills would inevitably be cheaper than the medical bills, and there's no way any sort of "cashing out" could improve his position.
Maybe you were thinking of his retirement fund. If you don't have health insurance, you can cash out your retirement early, for medical expenses, without penalty. That's if you DON'T have insurance. But you claim he did.