How to Settle Medical Debt

Settling medical debt can be a frustrating experience, as you will likely have to address doctors, your insurance company and potentially the government. Hospitals and other medical service providers will pressure you to exhaust all potential avenues of funding before offering to settle your debt. You may have to explore financial aid options from the hospital in addition to requesting government assistance if you are eligible for it.

Instructions

1

Review all your medical bills for errors. Common mistakes that hospitals make include billing twice for the same procedure, billing for procedures that never happened, billing for the wrong procedure, and billing for something on the wrong date. Try to submit reports of any errors within three to six months of noticing them and before your insurance claim has been settled to ensure the greatest chances of success. Maintain extensive records of this review process, and submit any discoveries that you make to the hospital in writing.

2

Determine if you are eligible for financial aid through your hospital. In most cases, you must submit an application for financial aid within three to six months of the procedures you would like assistance for. Some private hospitals, such as those run by religious orders, give patients access to alternative sources of financial aid. The U.S. Department of Health and Human Services subsidizes hospital charity care for families that make up to 200 percent of the federal poverty level. Ask the hospital to set up a more affordable payment plan for your medical debt.

3

Appeal your insurance claim settlement if you have medical insurance. If certain procedures that you think should have been covered were not, request that your doctor send an appeals letter to your insurance company to support your claims. You may need to file multiple appeals and contract the assistance of an insurance lawyer to win an improved settlement.

4

Request a medical bill reduction from the hospital citing financial hardship. Hospitals are unlikely to grant you any sort of debt settlement unless you can provide documentary evidence that you have tried to work out a payment plan and have exhausted all sources of charity, hospital financial aid, and government assistance.

5

File for personal bankruptcy if this fails to settle your medical debts to a manageable level. If you can successfully file for Chapter 7 bankruptcy, all medical debts will be discharged. The majority of your liquid assets will be distributed to your creditors during this process and your credit rating will be severely damaged. Contact a bankruptcy lawyer if you think it will be your best course of action.