How to Get Help Paying Medical Bills

If you think medical costs are becoming more expensive, you’re right. Studies show that patient medical expenses – including deductibles and out-of-pocket maximum payments – have gone up almost 30% in recent years.¹ So even if you have insurance, you could still get stuck with a bill for hundreds, or even thousands, of dollars you weren’t expecting or can’t afford.

If you’re looking for relief, here are some suggestions to get help with medical bills:

• Request an itemized bill
  Billing errors happen. That’s why the first thing you should do is request an itemized bill from your provider to ensure all charges are correct. Whether you’re charged for services you didn’t receive, or you’ve been double charged, it’s up to you to find and fix mistakes on your medical bills. If you do find something, call your provider and your insurer and ask for an explanation. It’s important to understand everything on your bill before submitting a payment.

• Negotiate the costs of your medical bills
  Not all providers are willing to budge. However, some may allow you to negotiate your medical expenses if you contact them before your due date. First, research the fair market price for the care you received. Companies like FAIR Health collect data from billions of health care claims and make it easy to compare what you got charged to what others paid. Once you have the information you need, contact the billing department and try to negotiate a lower payment. If you don’t succeed, at least you tried. But if you do succeed, your time and effort will be worth it!

• Request a payment plan for medical debts
  Paying the entire bill, or even a portion of it, may not be an option. As a sign of good faith and willingness to satisfy your medical debt, ask if you can pay the bill over time.Some providers do offer financial assistance programs, and the amount you pay each month may be negotiable. Before you enter a payment plan agreement, be sure to understand if there are any fees or interest charges and get all payment terms in writing.

• Tap into your emergency fund
  Rainy day fund. “Oh no” fund. Emergency funds have a lot of names but exist for one reason — to pay for unexpected expenses. If you have one in place, some hospital bills might qualify as a reason to make a withdrawal. If you don’t already have this backup system in place, start an emergency fund to help with future expenses.

• Consider a personal loan to pay your medical bills
  Personal loans help you cover your medical debt now and repay the balance over time with predictable, monthly payments. Although you’ll likely repay the debt with interest, it could be a better alternative to running up credit card balances. Unlike some credit cards that have variable interest rates, the interest rate for most personal loans stays the same until the balance is paid off.

  Need help paying medical bills? See if a medical loan from OneMain is right for you.

• Research government programs
  There are a variety of government programs that help pay for medical bills and other expenses. You can check USA.gov for the full list of help with medical bills, but here are some quick links:

  • Medicaid and CHIP (Health Care for Children) - Medicaid and the Children's Health Insurance Program (CHIP) provides help with paying medical costs for children of families who cannot afford health insurance or don't get it through their employer.
    
    

  • Social Security and Medicare – Local Social Security Administration (SSA) offices help those on Social Security and Medicare find help. People over 65, people with disabilities under 65, and people with end-stage kidney disease are eligible for Medicare.
    
    

  • Medicaid for Adults – Medicaid is a joint federal and state program that helps with medical expenses for some people with limited income.

FAQs about medical bills

• What happens if you don’t pay medical bills?
  Not paying your medical debt can quickly snowball and have serious, lasting consequences on your financial health. Some providers may add hefty late fees and interest to your bills. After a period of time, typically 90 days or more,² your health care provider will send unpaid bills to a collection agency, which can lead to negative credit reporting. If nonpayment continues, debt collectors may sue you, place a lien on your property or a levy on your bank account, which will freeze your account. The creditor can then take money from your account without your permission, until you have paid off your debt.
  
  Remember, many providers will gladly work with you to create a payment plan. Sometimes all it takes is a single phone call to avoid the dire circumstances listed above.

• What happens if a medical bill goes to collections?
  Like all debt that winds up with collection agencies, unpaid hospital bills are reported to the three major credit bureaus. The debt will wind up on your credit report and your credit score will take a hit. Aside from a decrease in your credit score, you’ll also receive letters, calls and possibly even text messages from bill collectors, which may add unneeded stress in your life, especially if you or a loved one is recovering from a medical procedure.

• Who qualifies for financial assistance for medical bills?
  Also known as charity care, federal law mandates that nonprofit hospitals offer financial assistance. Eligibility requirements vary by state and hospital and depend on your income and family size. While for-profit hospitals aren’t required to offer assistance, many do.³
  
  No matter what income bracket you’re in, it doesn’t hurt to inquire and apply. Since charity care often operates on a sliding scale, even if you don’t qualify, you could still get 20% or more off your medical bill.³

• Does medical debt go away?
  Like all debt, medical bills won’t magically disappear, and ignoring them may lead to financial consequences that could haunt you for years to come. While some believe medical bills “disappear” off your credit report after seven years – as long as any other collections debt – it never really goes away. Even after it’s too old to be included in your credit report, debt collectors can still legally collect the debt from you.⁴

Take the pain out of paying medical bills

Getting stuck with a large medical bill can be frustrating. After all, you might not know what’s coming in advance. If you do get hit with medical debt beyond your budget, remember there are options available to possibly lower the costs and pay it off in a way that’s comfortable to you.