Medical Debt and How to Overcome It with Thrifty Guardian (2024)

Medical debt can be a scary thing to have to overcome. Whether it’s yourself or a loved one battling it, medical debt isn’t something that’ll just go away. That’s why today we’re going to get into tips to help you finally get out of debt and pay off the beast that is medical debt.

Gotintomedicaldebtafterafreakaccident? Here’s whatyou coulddo:

Accidents can happen anytime and anywhere. Afreakaccidentcan costyoudearly. One of the non-lethal outcomes of anaccidentis themedicaldebt.

Overwhelmingmedicalbills drive most people to bankruptcy. Consumer Financial Protection Bureau (CFPB) states that 20% people will have to encounter collection agencies formedicaldebt. Most of these Americans don’t know their options.

Medicaldebtcontributes to more than half of all bankruptcies, according to NerdWallet, a financial website. To foot their exorbitant hospital bills, people who are insured are forced to bootstrap. One of the most pressing issues found amongst people withmedicaldebtis their lack of bill repayment options.

To break such a vicious trend ofmedicaldebt, here’s whatyoucoulddotobecomedebtfreesuccessfully.

Find out what feeds the bill

Whenyou’ve armed yourself with price range information, it’ll helpyouto start the discussion with an upper hand.Youmay check your insurance carrier’s online portal and that of the other leading insurers to check for the recent negotiated rates. Websites like Healthcare Blue Book, New Choice Health, and Vimo can make your job of the market survey a lot easier. In a matter of few clicks,you’d know the amount of fees exacted by the local doctors and hospitals andyou’d also get to know the discount amount provided by the insurance carriers.

To find out the average full list price of a particular treatment,you’ll have to type in the name of the procedure and compare the cost of the treatment with that of the negotiated national average price.

Use words that kill

As soon asyou’vegotthe price reference points,youcouldtalk to your doctor’s billing person or the hospital’s patient billing manager, and say things like “My bills are too high. I’d appreciate ifyoucouldadjust the bills to be more affordable.” or “My health insurance coverage falls short of compensating this treatment of my own and would be glad to see ifyoucan cut the price.”

When things get personal, it might help. Mention the sources of glowing recommendations to your provider. It’s always nice to get appreciated for the hard workyou’ve put in. But don’t overdo that. Ifyou’ve been recently laid off, say it to the person in charge of billing.You’d be surprised to see how smilingly your provider’s billing staff may offeryoua break.

In another instance,youcan offer to pay cash upfront. When speaking to your doctor say, “I’ll be payingyouout-of-pocket this time. Wouldyoube willing to see me for the same amount I paidyouthrough my health plan in all these years?”. If your offer is accepted by your doctor, then thatcould lead to a neat 40% discount.

Moreover, ask for financial assistance plans when in a hospital. The fact is that these plans aren’t just for the poor. Even for a person who earns $100,000 a month, but has $50,000medicaldebtto repay, can qualify.

Harp on the outpatient centers

Certain surgeries scheduled at a hospital that may require an overnight stay can be performed in a more affordable outpatient center. Ask your surgeon whether or not your surgerycouldbe performed at an outpatient center. May be your doctor chose a hospital for a variety ofmedicalreasons, but you’d lose nothing for asking.

Treat first negotiate later

Now, ifyou’ve already undergone a procedure and yourmedicalbills have started to skyrocket, thenyoumay first try seeking a discount to keep it manageable. Your request may be granted pretty quickly as hospitals prefer to strike the charges off their books instead of pursuing a cumbersome collection process. Don’t settle for a 10% or 20% discount. That’s nothing when compared to what they are charging. Rattle everyone in the organization’s management hierarchy – from the billing manager to the vice-president of finance, and build relationships with the help of your story.

Keep everything documented. Write down every person’s name, title, and contact informationyou’ve spoken to. Not just that, jot down the date and timeyoucalled and what conversationyouhad with each person. Whenyou’ve reached a settlement, ask for a written agreement.

Pay off medical bills as agreed to avoid delinquency and collection harassment.

Ditch the plastic

Never use a credit card, even ifyou’ve planned to ask for a discount later. Your bargaining position will lose steam ifyouuse credit cards to pay off yourmedicalbills. This is because hospitals lose interest in negotiating withyoufor payments, once they’vegottheir due. Credit cards come with a high interest rate, and that would accelerate yourmedicaldebtburden faster.

Ask for a plan

If your request for a discount on yourmedicalbills has fallen on deaf ears,youmay ask for an interest-free payment plan. This kind of payment plan will provideyouwith an opportunity to build a good rapport with the hospital authorities by making timely bill payments.

Aftera year or so, remind the hospital’s billing office, “I’ve been regularly paying my hospital bills for almost 18 months now. Would cancel the rest of the bill. My family is having a tough time dealing with this crisis.”

Stand on the shoulder of a giant

Finally, whenyousee that the hospital or doctor isn’t givingyoua discount and yourmedicaldebtis getting out of control,youcan approach a non-profit or professional advocate to helpyoubargain for a fairer deal.

Suppose,you’ve been injured in anaccidentand your carrier won’t foot your medical bills, andyou’re battling a personal injury case (because the law foundyouguilty, or there’s a lack of evidence or whatever reason it might be), thenyou’ll be liable to pay for yourmedicalbills entirely. In such a worst-case scenario,youhave little options to fight back and pay for the treatment cost out of your pocket. To pay off your outstandingmedicalbills andbecomedebtfree,youmay either turn to your family and friends for financial help or consider filing for bankruptcy.

Andy is a blogger at Penny Less Dad and financial writer associated with the Oak View Law Group. He is a debt expert and a member of several online forums where he shares his advice as well as tips to lead a financially independent life. Follow him on Twitter.