Saturday, May 20, 2006

Help for Paying Mounting Medical Bills

When you receive medical bills in the mail, it might seem as though they just keep coming. Even a day or two in the hospital can put you back several thousand dollars. It is important that you stay on top of each bill that arrives, however. If you cannot deal with the bills yourself due to illness, ask a family member or friend to advocate on your behalf with doctors' offices and your your health insurance company.

Read

    Go over each bill carefully. It is possible that you were overcharged for certain procedures or tests, that those tests and procedures were never done or that your insurance company is supposed to pay for some of them. Pull out your insurance handbook if you have health insurance, and review your plan's coverage details. You may also not have to pay for some bills that were submitted to the insurance company late.

Negotiate

    Before your bills get too out of hand, communicate with your insurance company and the doctors sending bills. Hospitals and doctors' offices often have payment arrangement plans to help you pay your bills over time. They may have programs for people under a certain income limit or with extenuating circumstances. They may be willing to reduce the amount of your bills if you can pay a certain amount in cash or explain your inability to pay. If you do not have health insurance, ask to be charged what the insurance companies pay for the same procedures, tests and care. Individuals are often charged more than the insurance companies.

Communicate

    Staying in contact with medical billing offices is vital. You may have to submit appeals in a letter to them or stay on the phone constantly as you work through issues with your medical bills. If bankruptcy is a result of your financial circumstances, approach the billing offices before you find you file. They are often willing to work with you, but it is your responsibility to contact them if you need help paying your medical bills.

Charities

    Dozens of charities and medical funds are available to people across the country. Some have income limits, and some do not. Some are restricted to providing help to individuals with certain conditions and diseases. The state of New Jersey, for example, has a Catastrophic Illness in Children Relief Fund for families who are having a difficult time paying for medical bills for their children.

Debt

    You can also consider debt consolidation or debt settlement to pay medical bills. Debt settlement will damage your credit significantly while you are in the program and for a year or so after you pay off your debt, but it may help you get rid of your medical debt and reduce your overall bill by 50 to 60 percent. A medical consolidation loan is another way to pay your medical bills. However, it also has some negative aspects. If you get a secured medical consolidation loan, you will have to provide collateral, which may be your house. An unsecured loan will come with a much higher interest rate. Before you get a consolidation loan, negotiate to reduce your medical bills as much as possible. It is only worth getting a consolidation loan if you can get a lower interest rate on your loan than you would pay by paying the medical creditors directly or to avoid going into bankruptcy. A consolidation loan may help you preserve your credit score to some degree as well.

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