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Medical Debt
Catching Up on Delinquent Medical Debt
Of all the financial surprises that can arise throughout life, medical debt is one of the most common. Because of this, it can often be difficult to solve, especially considering that medical debt is almost always unexpected.
Catching up on delinquent medical debt can seem like a challenge. However, you may be able to address the debt and put the financial burden behind you with the right tools and information.
Most of the time, debt is a choice. We choose to take out an auto loan to buy a vehicle. We make the decision to finance a home or open a credit card. These financial products all require an underwriting process and for financial institutions to agree that you're likely able to support the expense of the debt. Medical debt, though, is quite different. There usually isn’t an underwriting process, sometimes, you get sick or injured, whether your budget is ready for it or not.
Because of this, people find themselves indebted to medical providers quite unexpectedly. Since all of their other expenses still need to be met, it can be challenging for people to recover from the financial burden of medical expenses. When medical debts go unpaid, many of the same consequences occur as with other types of debt. The individual may face negative marks on their credit reports, collection calls and letters, and even legal action for the debt.
If you've incurred medical debt, it's important to know what resources and tools are available to help:
Charity Care - Through charity care programs, hospitals or medical providers discount the medical bills of people who fall within specific income parameters or meet other qualifying circumstances.
Payment Plans - If the debt is delinquent, it's essential to communicate with the medical provider. They may be willing to accept payments over a period of time.
Negotiate a Settlement - Another option may be to negotiate a settlement. Debt settlement is often worth exploring if a person can't repay the debt in full but can afford to repay a portion of what they owe.
When you find yourself dealing with an upcoming medical procedure, there are steps you can take to prepare for the expense. When you have the time and opportunity to begin this process proactively, you can evaluate the different options, which might include:
Preemptive Discussions - First, it can be beneficial to speak with the billing department at the medical facility. They usually have personnel dedicated to helping you understand the cost of your healthcare, what any insurance you have may cover, and options for repayment.
Health Insurance - One of the best ways to prepare for medical emergencies and avoid medical debt is to have suitable health insurance.
HSA - As a supplement to health insurance coverage, individuals may be eligible for a Health Savings Account (HSA). This provides the option to set aside pre-tax dollars for future medical expenses that can roll over from year to year.
It's easy to understand why medical debt is such a serious problem. However, while it does carry most of the same risks as other delinquent debts, medical debt also has several solutions you may not find with other debts.
For more information on how to decrease medical debt, access the full article here.
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