Paying Off Medical Debt: On The Road to Health and Financial Recovery

Anyone who's been in debt knows how this difficult situation can take a toll on one's health because of the worry it can cause a person. And yet sadly, when it comes to racking up considerable debt, having to go to the hospital is one of the leading perpetrators. But before one allows the misery of debt get in the way of making a full recovery, it's worth looking at these tips for managing and paying of medical bills.

  

1)Take care of bills as soon as possible. Naturally, the best way to avoid going into serious debt is to take care of bills right away, especially as ignoring these can put a dent on one's credit score. Besides, it might be possible to bargain with the healthcare provider if done before the bill heads to the collections department.  

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2)Negotiate with the hospital. As mentioned earlier, it's quite possible to bargain with the hospital. Not too many people think to do so but approaching one's medical provider to negotiate for lower rates on medical procedures can be worth the effort. Some options to consider are asking for discounts, recommending an installment plan, or offering a down payment for a reduction on the bill.  

3)Understand the bill thoroughly. Considering the amount of items contained in a medical bill, it's not impossible that there may be overcharges tacked on to the bill so it's best to read each item closely to know if there are duplicates or charges that shouldn't be in the invoice.

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Understandably, there may be some item or procedure codes that patients might not easily comprehend. Don't be afraid to ask about these even if it means going through the entire bill.   

4)Look into assistance – financial or otherwise. There are many avenues for getting financial aid to pay for one's medical bills. Low-income individuals may qualify for Medicaid or assistance programs from the local government; similarly, there are state- and local-level insurance plans for children from lower income families. Nonprofits and even the hospital itself may also have programs that help reduce or completely pay off bills, but due diligence on the part of individual or family may be necessary as there aren't always advertised.

Meanwhile, credit counselors, medical billing advocates, and support groups can also provide invaluable help in managing and organizing debt repayment, finding information regarding financial aid, as well as resolving billing disputes.  

5)Think about filing for bankruptcy. A CNBC.com article reported that being unable to manage medical bills is the biggest reason for bankruptcy in the country. It can be a last ditch strategy as while filing for Chapter 7 bankruptcy can afford one a "clean slate," it can also mean a lower credit score. Besides which, not everyone is eligible for Chapter 7 bankruptcy, so it's best to weigh one's options and consult with an expert choosing this step.

For more on ideas on how to manage and pay off debt, subscribe to this Brennan & Clark blog.