How to Avoid Medical Liens

It can happen to anyone -- an unexpected medical emergency can deplete insurance and life savings, leaving patients and their families with mounting bills and no foreseeable way to pay. If you ignore medical bills, the provider may pursue reimbursement through legal channels, obtaining a judgment or "lien" in court against you or your property for a forced payment. While it can be tempting to stick your head in the sand and ignore bills and calls, facing the problem head-on is not only the best option, but one that should keep your credit intact.

Instructions

1

Open medical bills as soon as they arrive, rather than putting it off because of stress or fear. Check them carefully to make sure you are being charged for the correct dates and services before you begin calling the provider.

2

Negotiate the bill in question to have it reduced to a more manageable amount. Politely dispute anything that you feel is an overcharge, or a charge for a service you did not receive. Find out what an insurance company would owe for the services provided, and offer the medical provider this amount. If the provider will not go over the bill line-by-line to reduce costs, ask what the lowest amount is that the provider can accept for payment.

3

See if the provider -- such as a hospital -- has a program that assists those having trouble making medical payments. You may need to speak with several people before you are directed to someone who can discuss this with you; however, if the first person tells you that no program is in place, ask to speak to someone higher. Make sure that there is no program, and that you don't qualify, before you assume that option is off the table.

4

Set up a monthly payment plan to tackle the medical bills and avoid having the debt moved to a creditor, who could then obtain a medical lien against you. Be honest about what you can pay, and stick to it; most providers would prefer to deal with you than pay someone else to collect your money.

5

Contact the provider immediately if there is any reason why you will not be able to meet a payment plan obligation. If you are just skipping a month because of a financial hardship, the provider will probably be understanding -- especially if you notify the office right away to report the issue and make assurances to resolve it.

6

Call the health department in your state to find out if there is a program to assist you with the payment of medical bills. Some may be age-restrictive, such as only for the elderly or children. If the programs are available, however, find out the qualifications, process for application, and the turnaround time for an answer. This is information you can pass along to your medical provider to prove you are making an effort to resolve the situation.