How to get Assistance for Medical Debt
A serious medical condition can generate massive debt and mountains of bills…
Hospitals charge exorbitant amounts for simple procedures, so a short stay can turn your finances upside down. Many insurance companies aren’t covering all that they used to. The recession is affecting their bottom line and they are passing more expenses on to the consumer. If paying medical debt is an impossibility, there are some options in how you can deal with it. You can choose to negotiate with the hospital yourself, get a private company’s help (debt reduction companies, health care advocates, medical billing advocates), or government and private funding programs. Remember unsecured debt(i.e. medical debt, credit card debt) is negotiable. Hospitals CAN make a deal with you, it is very common.
Unpaid medical bills make up over 60% of all U.S. consumer debt. Many times debt is payed for on high interest credit cards, making the problems much worse. Before you turn your medical debt into raging credit card debt, you should try to get a price reduction. All hospitals have financial service departments dedicated to working with people who are having trouble bearing the expense. You have the advantage negotiating hospital debt. The hospital would rather recover their costs than get completely stiffed. If you need assistance, you can contact the billing department and explain your situation. You will need to provide proof and most likely meet certain income requirements. Also, hospitals are required by law to employ patient advocates that can help you find financial programs like medicaid, social security disability, or charity programs. These advocates are there to settle disputes between the hospital and patient.
Are there Charity Programs for Medical Debt?
If you have a chronic illness, you can sometimes find a non-profit group to provide assistance. Groups like the American Cancer Society (1-800-ACS-2345) and the CancerCare Co-Payment Assistance Foundation (at 1-866-552-6729 or CancerCareCopay.org) have programs that are established to specifically help pay bills due to cancer. There is also a very good list of financial assistance links here for other specific health problems.
You might want to also look into government programs. The government website GovBenefits.gov contains a large list of assistance programs for the financially needy. You need to meet specific requirements to qualify, but there are quite a few plans to search through. Also check the Department if Health and Human Services website. They provide many programs that help with medical expenses.
What Private Companies help with Medical Debt?
Private companies can also have a hand in fixing your medical debt. Businesses that do this type of work include debt settlement companies, healthcare advocates, and medical billing advocates. Medical billing advocates focus on auditing hospital bills. They look for errors and overcharges that are present on many bills. An MSNBC article recently stated that “8 out of 10″ bills have multiple errors. Medical coding systems have become so complicated that they easily contain various mistakes. Medical billing advocates will also work with hospitals to negotiate or dispute what you owe (saving you money). They usually get paid a percentage of what you save, so asking them to look at your case usually costs nothing up front.
Another road you can take is to hire a healthcare advocate. A healthcare advocate can help you save with aspects of the healthcare process like fee negotiation, insurance disputes, drug price comparisons. They even compare rates between different hospitals. Their debt reductions usually come through their personal relationships and abilities to talk a hospital to accept a lesser fee.
Lastly, debt settlement companies can reduce medical debts through negotiation and payment plans. They usually take a percentage fee and a monthly management fee if they set up a payment plan.
Is Bankruptcy an Option?
Bankruptcy is a last resort, but is another way to deal with medical debt. Over half of personal bankruptcy is due to medical bills. When you file for bankruptcy you hand your finances over to the courts. You can choose Chapter 7 or Chapter 13, depending on whether you have income coming in or not. This involves a liquidation of your assets (chapter 7) or a debt restructuring (chapter 13). But when you finish, you will be free and clear of your debt. Bankruptcy leaves a big scar on your credit score for up to 10 years. But if you can’t get out from under overwhelming medical debt, it’s an option to consider.
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