How to Deal with Large Medical Bills
Medical bills are unlike typical usual monthly utilities. There is often much confusion surrounding medical coverage, and you rack up a lot of debt in order to pay for it. This is especially difficult given that many have trouble keeping track of their finances, or they don’t have the resources to deal with unexpected financial hardships.
Someone that recently underwent treatment for a serious illness is often left with medical debt, even if they have insurance. Even if that person has an affordable health plan, their coverage may not be as thorough or complete as it should be. Some people don’t realize for months or years that their coverage is not complete and by then the damage has been done.
The good thing is that there are ways to effectively manage your medical debts and avoid being overwhelmed.
1. Always Review Your Bills
The last thing you want is to pay for something that you don’t owe. Review your medical bills thoroughly and check for errors. Medical bills are often riddled with errors, so you shouldn’t pay them blindly. Pat Palmer, CEO, and founder of Medical Billing Advocates of America said that three out of four medical bills they review contains error making 80% of all bills inaccurate. It is therefore important for you to review your bills before you pay them.
Look for the listed or itemized charges and see if they match with what was agreed upon. If you don’t get itemized charges, request one. Don’t be afraid to ask questions about your provider if you think your bill is inaccurate. You should also check for double billing or service charged but never performed. Do not pay any amount before confirming that their error has been corrected.
2. Try to Negotiate
If you are not financially capable of settling your current medical bills, don’t hesitate to talk to your medical provider. Provide the supporting evidence and explain your situation. If you are asking to have the bill reduced, be sure to have a good reason. You can negotiate either before your treatment or certain procedure will start or even after the treatment has been completed.
In many cases, hospitals and providers are prepared to work with patients who demonstrate a genuine need. If you’re lucky you can get a partial or full reduction if found eligible for financial assistance.
3. Ask if Payment Plan Options Are Available
A payment plan is when your provider agrees to spread out your payments over time. This usually happens when you can’t afford to pay the bill in full right away. Make sure to consider your existing responsibilities and expenses when opting for a payment plan to ensure you’ll be able to make the payments. Late payment tends to dig people into a deeper financial hole due to additional charges and interest.
Ask your provider if you can settle your medical debt in a payment plan with a low or no interest rate. If you can cover your medical debt in full cash, it is advisable to do so. With this, you can have a bigger discount and avoid extra fees and interest.
4. Look for Financial Assistance
If you happen to go to a non-profit hospital, they are mostly required to have financial assistance program or charity care program that helps people with low income to pay their medical bills. Also, there are some charities or organizations outside hospitals that offer help to lessen your healthcare burden. Make sure to do your research to find out what’s available to you. They might help you cut out a chunk of your medical expenses or cover it fully.
5. Weigh Your Priorities
Medical debt is no joke. Thus, you should take the time to plan and make a decision on how you want to handle this debt. If it’s something that you can pay off yourself, then start working on budgeting your expenses so that you can set aside money for paying them off as soon as possible.
A change in a lifestyle can help, like cutting out some luxuries that aren’t necessary, or you can take on a second job to help get your finances back on track for paying that debt off. Assess your situation and how you handle your finances. If you found something unnecessary in your routine that is just throwing your money away, then make a change and allot that money to pay off your medical debt.
6. Consider Hiring a Medical Advocate
If you have a larger debt than a few hundred dollars, you should consider hiring a medical advocate to help you negotiate your debt. Medical advocates are professionals who help people manage their medical bills and get discounts they wouldn’t otherwise be able to get.
They can review your bills and look for errors, negotiate with your insurance company on your behalf, and contact the provider to try to get a lower payment plan. Ask your friends and families for any referrals they might have.
7. Declare Bankruptcy – Last Resort
If all else fails and you have left with no choice, you may need to declare bankruptcy. Bankruptcy can be an option if you have a significant amount of debt and/or your insurance company refuses to pay the bill and you have no other means of paying it.
Be cautious when taking this course as declaring bankruptcy can and will highly affect your future endeavors like getting new credit, taking out a new loan, and getting a new job. Only consider this option if you have absolutely no other means of paying off your debt.
The importance of this is that it teaches people what to do when they are struggling with medical bills and gives them a plan to follow. This is important because medical bills can be very overwhelming, especially if you are not prepared for them.
8. Speak With a Nonprofit Credit Counselor
One of the best things you can do in order to assess your personal capabilities and take the right course of action is to speak with someone who knows about these types of things. You can speak with an expert, nonprofit credit counselor to help and guide you through the process.
They will be able to educate you about the ins and outs of medical debt, but also give you advice on what steps you should take from there. From creating a budget, how to deal with creditors, and adjusting financial habits, these professionals will be there to assist you. Make sure to plan out a budget that will allow you to pay off your medical debt, as well as everything else.
Final Thoughts
It’s estimated that 100 million people in America suffer from medical debt, and you don’t need to be a part of this statistic any longer. With proper management, enough research, and help from a nonprofit credit counselor, you can be confident you’re in good hands and on your way to becoming debt-free.
