Managing Medical Debt: Strategies for Patients and Healthcare Providers
Paying for medical bills can be very expensive. It is something that can crop up on your credit history without you knowing. It isn’t because you have had a medical procedure in recent weeks. It will likely be an error or an overpayment on a previous medical incident.
Avoiding paying extra for your medical bills is very important. These unexpected bills could cost you around $1,000 extra on top of the bills you are already paying. With the right actions, you can avoid paying this debt by speaking to your medical provider or health insurance company.
Don’t Pay Any Healthcare Debt Before You Understand What It Is
There are many debts that you should look to pay off without any hesitation however, healthcare debt isn’t one of them. Medical bills have many errors and according to the Medical Billing Advocates of America, it is estimated 80% of those medical bills consist of errors.
Usually, it would be pensioners who are more likely to receive these incorrect medical bills. That is because they have multiple insurance carriers and private insurance.
Something else you must remember is that debt collectors for your financial debt must give you formal instructions on how to pay off your debt.
Request Itemised Bills
Once you have received an unknown medical bill from a healthcare provider, you should always ask for a breakdown of the services and providers of your care. In most cases, you can log into an account where you can review your credit billing history for your health.
If they are reluctant to offer you a breakdown of your bill, remind them that it is your right under the federal law HIPAA (Health Insurance Accountability and Portability Act.
Verify Bills That Are Described As An Explanation Of Benefits
An explanation of benefits will usually be given to you by your health insurer. It tells you everything you need to know about how much the healthcare provider charged your insurance company. It will also tell you how much the insurer will pay and how much of the remaining balance you require to pay.
If you have any issues with your EOB documents, contact your healthcare provider.
Review Your Billing Codes
If you think there has been an error when receiving your medical bills then look for the CPT codes. These codes are mainly for describing healthcare services and procedures you have had in the past. If there are any codes you don’t understand then search these codes online to find out what they mean.
Verify Any Claims Which Have Been Submitted
You must ensure your medical provider submits under the health insurance plan which you have, especially when you have recently changed your jobs or health insurance.
If the healthcare provider is in your network for your healthcare plan, the provider has likely organised a discounted rate with your insurance company. That means you will pay less for your medical issues if you go with that provider.
If you don’t owe the healthcare provider any money, you should contact them to see what the bill is.
If You Do Owe Money Then Try To Negotiate A Lower Fee
We all know that medical bills are expensive so there is no harm in negotiating a lower fee. All you need to do is contact your healthcare provider and ask if you could pay a lower price. Explain your current situation to your provider and say you cannot afford the bill. Maybe make them an offer to pay a sum of money upfront at a reduced rate.
For example, if you are charged $2000 but usually it costs around $1500 for a regular medical bill, review your finances. If you know you can pay that fee sooner but only at a lower price then make your provider aware of that. They would rather receive money sooner rather than later.
Ask For A Payment Plan
If a reduced bill is declined or you cannot afford your medical bills, it is best to seek a payment plan. There are many ways you can do this as well. If the medical bill is new, we recommend contacting your healthcare provider. They will provide you with a patient medical financing plan to help pay off your bills. Working with your healthcare provider will likely offer you a 0% interest-free payment plan if you make all payments.
If the medical bill is old and debt collectors are not seeking your payment, speaking to a financial debt advisor will be the better option. They will be able to provide you with a better repayment method and will negotiate with the debtor to help reduce the fees.
Summary
Dealing with your medical bills can be very stressful, especially if they are unexpected. You must check your medical bills to see if they are correct. Additionally, you should always look to reduce your fees if you know you can pay a lump sum at a reduced price. However, if things get difficult then you should seek a debt solution to help pay off your medical bills.
