Help With Unpaid Medical Bills

The high costs of health care place many people at risk of financial ruin, with only one major illness or injury standing between them and bankruptcy. According to CNN Health, 62 percent of the bankruptcies filed in 2007 resulted from costly medical bills that people were unable to pay. Fortunately, there are some programs and options available to help with unpaid medical expenses.

Billing Processes

Unpaid medical bills can quickly build interest charges and place a person even further in debt than at the start. As a first resort, attempts to set up payment arrangements with medical providers and hospitals may help prevent further action, such as debt collection agencies or wage garnishments, from being taken. Double-checking billing statements for excessive charges or charges that should have been paid by insurance coverage may provide ways to reduce the total bill amount. Excessive charges may show up as double billings for services not received. Mistakes made during the provider's billing process can also result in unpaid insurance claims.

Charity Care Programs

Charity care programs are offered by nonprofit hospitals and other nonprofit health care agencies to assist the uninsured and people with limited resources with medical costs. As community service providers, nonprofit organizations receive tax exemptions from federal, state and local governments in exchange for the services they provide within communities. Offering special payment programs for people with unpaid medical bills are one way these organizations work with their communities. In some cases, even for-profit providers may have financial assistance plans available to those who qualify.

Medicaid Considerations

The Medicaid health insurance program pays medical providers directly while requiring a small co-payment amount from recipients in some states. Patients with Medicaid coverage should not be billed over and above their co-payment requirement. When this happens, persons can speak with their state's Medicaid administrator or agency to help resolve unpaid bills. Individuals and families with limited income who don't have Medicaid coverage may want to consider applying for coverage. In some cases, Medicaid will make back payments on unpaid bills for eligible applicants provided the bills are no more than three months old.

State Laws

An unpaid medical bill can prompt a medical provider to turn the debt over to a collection agency. When this happens, collectors can sue, garnish wages or seize bank account holdings for continued nonpayment on a bill. States such as Ohio, Kansas, Texas and North Carolina have certain in place that protect people from unfair collection practices. These protections place a limit on garnishments in terms of what percentage of a person's check can be withheld. Limitations on garnishment amounts are also enforced through the Consumer Credit Protection Act, a national law that sets maximum limits on garnishment amounts.