Managing Medical Bills

Managing medical bills.

As you may be all too aware, the financial obligations for those that have cancer are usually very different and much more challenging than for those who are not ill.

You have additional medical costs, as well as the possibility of eventually having less income if you've had to quit working.

Today I'm going to address ways to successfully manage your medical bills.

Here's an alarming number. More than half of all bankruptcies in the United States are triggered by major medical bills.

But this doesn't have to happen. You do have options.

The key is to talk to someone who knows how to help you develop a plan that is personal and unique to you for paying medical debt.

Here are six tips for successfully paying medical bills.

First, talk with your provider about your situation.

Financial stress can not only cause worry, but also embarrassment. The last thing you should do is avoid the problem.

Medical billing departments work with people every day who have trouble paying medical bills.

Talk to them and be open and honest about your situation.

Try to speak to the same person every time you call. This is important because that person is learning about your financial needs, and it will save you the frustration of telling them your situation over and over again.

Many hospitals offer charity care.

If you earn less than 200% of federal poverty income level, the hospital may eliminate part or all of the debt you owe.

Some hospitals are more generous, allowing for some charity if you earn up to 300% of the poverty income level.

Most large medical facilities have full time financial counselors on staff, whose job it is to help you find ways to pay your bill.

They will work hard to make sure you receive all of the coverage to which you are entitled.

From your insurance company, worker's compensation, Medicare, Medicaid, and other programs that may be available.

This applies even after your account has been turned over to collections.

Second tip. Call your hospital billing office, financial counselor, or even the collection agency.

You will find that more often than not, they will be sensitive to your situation.

After all, hospitals don't want to burn bridges with their patients. They want you to come back to them when you need care.

The third tip. Always respond to their calls and letters.

Again, be honest about your situation and don't hesitate to ask if you qualify for charity care or an installment plan.

It is important to read all of the correspondence from your hospital carefully.

If you do not understand the charge, call the hospital billing office.

Make sure you understand your bill.

There are many reasons why medical bills can be confusing.

You may receive several bills from different doctors for one medical visit.

For example, you may have one from the doctor, one from the hospital, one from the lab, one from the anesthesiologist, etc.

You may even receive some statements from the hospital before even receiving the bill.

Hospital statements generally include the total charges, the estimated insurance payment, and your estimated payment responsibility.

This is not a bill.

It is the insurance company explanation of how much they pay the hospital.

Only after the EOB or evidence of the benefits goes out, will you receive the actual bill from the hospital.

Carefully consider the benefits and costs of putting medical debt on your credit card.

Putting medical debt on one credit card may relieve one debt, but can increase your overall debt.

One of the most frustrating positions to be in is wanting to pay a debt, but the only way you can afford to do so is by incurring new debt or making minimum payments.

That extra burden may put you at serious risk of falling behind on debt and even filing for bankruptcy.

The fourth tip. Pay on time.

If you wait too long, your lack of payment may go to a collection agency and be reported to a credit bureau because many medical bills are unplanned or a much larger expense than anticipated.

It can be difficult to determine how to pay a bill. This is especially true if you are already on a tight budget.

Unfortunately, this causes many people to avoid opening bills and to set them aside with the intent to deal with them later.

Medical providers want to help people pay their bills.

They are in the business of helping people and they, just like many other businesses, want you to be happy with their services.

They also need people to pay their bills so they may cover the costs they incur that insurance companies do not cover.

Unfortunately, the reality is that between copays and large deductibles, you may end up owing a large debt after insurance is paid a portion.

Generally, hospitals and medical providers will make several attempts to collect payment if their phone calls and letters go unanswered.

The next step is to send the unpaid account to a collection agency.

Depending on the individual situation, the collection agency may report the debt to a credit bureau.

File a lawsuit in small claims court, or take both actions.

Again, the most important step is to contact the medical provider, even if you cannot afford to pay.

It's important that you explain your situation to them.

The fifth tip, don't rob Peter to pay Paul.

Believe it or not, you are not robbing Peter. You are robbing yourself.

You may not have enough cash to pay all your regular bills each month, so you pay the urgent ones first, like the water bill and mortgage, while you let the less urgent bills wait.

Getting behind on any bill can bring a huge price tag, both in mental stress and in real dollars.

You aren't robbing Peter. You are robbing yourself because in the end, you usually pay a high interest rate and late fees, and you may even damage your credit record.

It simply isn't worth it.

It can also mean sacrificing your health in order to protect your finances.

Today, there are more than 130 million Americans with a chronic medical condition like cancer, which requires consistent monitoring by a practitioner and daily medications.

Yet an increasing number of patients report skipping or rationing their medications and not making regular visits to their doctors because of financial stress.

This can not only cause serious damage to your health, but it can also end up raising the overall cost of your treatment.

This is especially true if you end up visiting an emergency room or a specialist as a result.

This is like avoiding oil changes on your car for $50, and instead having to replace an engine later for $5000.

To avoid robbing Peter to pay Paul, remember, you have to save money by paying your bills on time.