A Guide on How to Handle your Medical Expenses
The cost of treating an illness, receiving prenatal care, or tending to injuries after an accident in the US can easily cost up to five figures. Even if you have health insurance, you may find that the balance you owe is still significantly expensive. It is important to realize that even though you may be healthy now, you may find yourself in need of unexpected medical treatment, and the bills can add up quickly.
While it may be tempting to ignore these financial obligations, especially when you’re focused on healing from an accident or injury, you’re still required to take care of your medical expenses. If you get stuck with expensive medical bills, here are some tips to keep in mind.
Check to See That the Charges Are Correct
While medical care can be expensive in general, you may find that your bill is higher than it should be due to clerical errors. Check your bill to make sure you weren’t charged for a service or exam that you did not receive. Double-check your invoice to see if you were charged for an extra day or two if you had to stay in the hospital overnight. You may also be charged the entire day rate for your hospital stay even if you were discharged in the morning. If you see anything that doesn’t look accurate, get in touch with the medical facility right away.
Don’t Ignore Your Medical Bills
While you likely know this, it’s important to be reminded that you shouldn’t ignore your medical bills. If you disregard your medical expenses, your bills will be sent to collections and this could affect your credit score. Try to make arrangements as soon as you can so you can start settling your debt in a way that works for your budget.
Don’t Pay Your Medical Bills with Credit Cards
If it seems like your medical bills will never end, you may want to use your credit cards to take care of these expenses. However, this is a bad idea financially since it will create a balance on your credit cards and you’ll likely need years to fully pay off the debt due to high-interest rates. This will hurt your credit score and affect your ability to apply for other lines of credit in the future.
Work Out a Payment Plan
You can negotiate an interest-free payment plan by reading the fine print on your billing statement and contacting the hospital to discuss the repayment terms. In most cases, the medical facility will use final expense quoting software to provide you with an extremely high repayment amount, but you shouldn’t be afraid to talk them down to an amount you can manage. The billing team can use the software to make adjustments to your account and establish a new payment arrangement for you.
Part of your payment arrangement can include a discount for prompt payment. You may be able to receive a one-time discount if you pay the entire bill within 30 days. It’s also a good idea to use the Healthcare Blue Book to compare the price(s) you’ve been charged with what other doctors and hospitals in the area are charging for the same type of services you received. If you were charged considerably more than the local average, you may be able to negotiate the price even further.
Apply for Financial Assistance
If you find that your medical bills just don’t fit into your budget with all the other things you have to take care of, you may need to seek financial assistance. Some medical facilities offer this service, but in some cases, you’ll need to apply for Medicaid first. If you are rejected, you can apply for financial help through the hospital’s system. You’ll likely have to submit your pay stubs and tax returns to verify your income, along with your bank account details. Once the hospital reviews this information, they will determine what type of discount they will offer.
These are a few suggestions you can take advantage of if you’re struggling with medical debt. Depending on your situation and other financial obligations, you may be able to work out a practical way to take care of your medical expenses without going into more debt. Many of these options can also keep your credit score intact so you can pay your medical fees without this financial obligation taking over the rest of your life.
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