What to Do When You Can't Pay Hospital Bills?

Overdue medical bills played a part in 62 percent of all bankruptcy cases in 2007, according to a 2009 study by "The American Journal of Medicine." When medical bills are overwhelming, you might be able to work out a way to pay them off, even if you do not have a job. Bankruptcy should be an option only when you exhaust all alternatives.

Considerations

You may have to prioritize your bills when you have an unexpected medical emergency, suggests Liz Weston of MSN Money Central. You always want to pay for the essentials first, like your mortgage and rent and utilities, because landlords can evict you and the utility company can shut off service within weeks. Hospitals and credit card companies usually explore more avenues and wait much longer before they take legal action or involve a debt collector, which allows you to give them a lower priority in a tough financial situation.

Negotiate

Doctors and hospitals are often willing to negotiate bills with patients in distressed financial situations if it means they can secure at least some payment. According to a 2009 article in the "New York Times," the typical physician usually gives a 10 to 30 percent discount off the bill when a patient cannot afford to pay, and specialists may give a larger discount. If talking personally to a doctor seems daunting or shameful, his billing office will probably negotiate for him.

Misconception

In modern times, hospitals tend to avoid hardball tactics, such as suing a patient who does not pay a bill, because most are nonprofit and can use unpaid bills to lobby for more government aid or are profit-based and receive a tax deduction when someone skips out on a bill, according to CBS News. Liens on property, collection agencies and sometimes jail are the exception rather than the norm. This does not mean you should simply ignore hospital bills, because if the bill does end up with a collection agency, it will destroy your credit. If you have insurance and it rejects any claim, file an appeal. In the meantime, request the account status move to "unpaid"--this will prevent it from going to collections.

Tip

Ask the hospital for an itemized bill and look for erroneous or suspicious charges. Obscene overcharges, such as $129 for a box of tissues, comprise 5 percent of all hospital bills, according to MSN Money Central. Search around for state and local government assistance. Most states have programs to help low-income or disabled people pay for medical bills. Also, ask the hospital's billing department if it offers any social services. Hospitals are often required to provide some amount of free care to maintain nonprofit tax status.