Medical debt can be overwhelming to deal with. Besides the stress of dealing with owing someone money, it is frequently accompanied by a sickness or illness, making it all the more stressful.
Unlike other types of consumer debt, many people get into medical debt without having a choice. Even with heath insurance, the deductibles and co-payments can add up quickly, causing medical bills and subsequent debt to quickly spiral out of control. Many causes of medical debt are hard to avoid- most people don’t get into trouble with hospital bills because they want to, but because they have to to. According to this article from cnn.com, over 60% of all bankruptcies were attributable to medical debt, with the majority (over 75%) of those people having health insurance. Here are 5 tips for avoiding and dealing with medical bills and debt.
If possible research treatments and costs ahead of time-i.e., educate yourself- It’s not always possible to research costs, treatment options, or prescription prices ahead of time, but if it is possible, try to educate yourself on the potential treatment options or drug/prescription options available. Doctors won’t always give you a choice, so if you are educated on the particulars of your sickness or ailment, you can bring them up and discuss them with your doctor.
Review your bills carefully- This one seems like a no-brainer, but when dealing with poor health it can be even more difficult than usual to remember to check the hospital or doctor bill carefully.
Negotiate your medical bills- For some reason, unlike negotiating buying a car, people see doctors and hospitals as “above” negotiation and haggling. The truth is, hospitals, even non-profits, as with doctor’s offices, are a business. They are in business to make money, and they do negotiate with patients all of the time. Don’t be afraid to ask them to lower the bill to something more reasonable or to reduce the total of your bill.
Offer a lump sum reduced payment, especially cash if possible- Even if you can negotiate a lower total bill, offering a cash payment for a reduced amount can possibly reduce your bill even further. I have a friend who, after the birth of each of his children, went to the hospital billing office with cash in hand and successfully reduced each bill several hundred dollars on a bill of $1000, which was his portion after insurance covered everything they were going to cover. It never hurts to ask, after all.
Always make some payment, even if it isn’t for the full amount- One thing you definitely want to avoid if possible, is having your bill go to a debt collector or debt collection service. Once that happens, the hospital or doctor has already agreed to take a lower amount than the total, only the debt collection agency will try to get the full amount from you in order to keep the rest for themselves and make a profit. Discuss payment arrangements with your doctor or hospital before it gets to that point, they are very likely to be willing to work with you. In each of the several times I have had a hospital bill of more than $1000, the hospital was willing to let me pay it off over several months- most of the time, they will not even charge you interest or fees- they never did to me.
Similar Posts:
- Lower Your Medical Bills Through Negotiation, Cost Comparison, and Haggling
- Negotiating a Deal and Tips on Becoming a Better Negotiator
- 31 Ways to Save on Health Care and Medical Costs
- The Health Savings Account (HSA) and Can I Do Better Than a Health Insurance Company?
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Great tips…hospitals are always looking for a way to get cashin hand…especially in this economy. Negotiating will get results.
A few more things to add:
1. If your medical bill is due to your insurance company refusing to pay some portion you should review the terms of your insurance policy, the reason for their denial, and the appeals procedures. Most appeals have tight deadlines but often you can get the insurance company to reverse a decision. Depending on the amount at stake you may wish to hire a lawyer (it is an incredibly complex area of law). Lawyers can also be incredibly effective at negotiating a lower payment to the hospital or doctor.
2. If you aren’t able to negotiate a reduction in the bill, you should be able to actually set up a payment plan. That is preferable to charging the bill on a credit card because you won’t usually be charged interest by the medical provider.
To receive free or discounted care, you must show proof of your income, expenses and savings. This can include pay stubs, rent or mortgage statements, alimony, child support payments, utility bills, Social Security income, pension, food budget, debts, tax returns, unemployment checks, and bank account statements.
Thanks for such a nice post !
Medical bills are a major financial concern for general people.To have a control over these,are the medicare guides that available on the Internet are very helpful.They really provide enough information to find permanent solution to deal with your expensive medical bill.