Going to a hospital for any lengthy stay can result in large medical bills. Sometimes, these bills are much larger than you expect and may be more than you can pay—even if you can get a monthly payment plan. If you do not see how you can pay the bill, even if you must tighten your belt, there are ways you can negotiate medical bills, which can give you some relief.
Take Action Quickly
If you do nothing after receiving a medical or hospital bill, it will go to collections before long. Usually, you may receive two or three bills before this happens, but some medical offices or hospitals are not so patient.You can expect a better outcome when you respond to the bills quickly, investigate them first for accuracy, and ask any questions you have about the bill. After you are sure the bills are accurate and you were given the services listed, you can start to negotiate your hospital bill.
After your bills go to collections, you may still be able to negotiate, but your chances of doing so are not as good. A collections agency can take you to court, which could result in garnished wages or a lien on your home, and it may force you into bankruptcy.
Learn More About the Bills
Before you start paying a medical debt, make sure you have received the services that appear on the bill. A medical coder may have made a mistake, which can increase the cost or lead to a rejected claim. If the claim is not accepted, the coder may need to change the code and resubmit the medical bill to the insurance company.If you never received some of the services listed, call the medical provider and explain the problem. Sometimes, you may need to write a letter explaining the mistake. If you approach them with a kind and friendly tone, you are more likely to get a positive response.
Check Your Coverage
Unless it is an emergency, check your insurance plan to find out what the costs are for the deductible, co-pays, and co-insurance. You can also contact your health insurance company to find out what they will pay before you have the procedure. You can also shop around to see what other medical centers, doctors, or hospitals will charge.Checking around may enable you to get your medical bill as low as possible before the procedure. Afterward, look for your insurer’s monthly explanation of benefits (EOB) letter detailing the cost of various services and what they have paid.
Negotiate Your Bill Options
You can also negotiate your bills. It can help to reduce your overall costs, especially if you are low-income.When contacting your service provider about a bill, MoneyUSNews says you should ask open-ended questions to get the provider to tell you about various options. They may offer discounts, waive some fees, or even have charity relief plans.
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The provider may also be willing to lower your monthly payments if you tell them it would be easier to make them. Health.com says that simply asking them to reduce it because you would have difficulty paying it can help you get a reduced bill.
Another option to reduce your bill, MyHealthCareFinances says, is that hospitals may reduce your bill if you give them a lump sum. If your bill is $6,000, they may let you pay a lump sum of $4,000 and let the rest go.
Ask for a Payment Plan
When a hospital understands you are willing to pay your bill but need more time, they often will be glad to set up a payment plan for you. Asking them for this option may also enable you to avoid paying interest or late charges. They will likely ask you what you can afford, but it will help if you pay part of the bill right then.If you do not ignore the debt but communicate with the hospital quickly, it can prevent your bill from being sent to a collection agency. Once a payment plan is agreed on, send in your payments regularly. Bringing your bill below $500 will prevent your debt from being reported to the credit bureau.
How Medical Debt Can Affect Your Credit Score
Medical debt can affect your credit score, but not as quickly as it used to. NerdWallet says that after July 2022, the three largest credit bureaus erased all paid medical bills from credit reports that were previously in collections. They also removed all unpaid medical bills in collections if the initial bill was under $500.At the same time, the three bureaus decided that medical bills that go to collections will not appear on your credit report for one year. This change gives people time to get caught up on their medical bills before it hurts their credit score.
Once your credit score is lowered, it is harder to get a loan or credit card with a good interest rate. The repayment time is also reduced.
Get Help With Medical Bills
You may be able to keep your bills lower by getting medical care from different sources. Unless it is a life-threatening emergency, you can go to your regular doctor or use an urgent care center—both would be much less expensive than an emergency room at a hospital. Also, faster care is given at these centers than at a hospital. GoodRx also mentions that you will have lower costs by using in-network providers.Financial help may also come directly from pharmaceutical companies that manufacture the expensive medicines you need. Some of them provide excellent discounts, but you must contact them directly.
Negotiating medical bills is an excellent way to get your bill reduced, but you may need more help. Some states and other agencies offer financial aid with medical bills through various state and government agencies.
The Epoch Times copyright © 2024. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
