A history of good debt management skills can help you steer clear of overwhelming credit card debt and debt from personal loans. Even the most financially responsible individuals, however, are often unprepared to pay high medical debts that arise due to an unforeseen emergency. Whether you lack health insurance or your insurance policy doesn’t cover the bulk of your expenses, you possess certain rights when paying your medical debt.
Dispute the Bill
You can request an itemized bill from your doctor’s office or the hospital that provided your medical care. Billing errors could leave you paying for services you never received. MSN Money recommends that you scrutinize your medical bill for duplicate charges, services you never received, and miscellaneous errors such as being charged for a four-day hospital day when you actually stayed only three days. If you find billing errors, you can dispute them directly with your provider or hire a medical billing advocate to help you with your dispute. If the provider refuses to amend your bill, you can file a formal complaint with the National Health Care Anti-Fraud Association or your state’s attorney general’s office.
Seek Government Assistance
Medicaid is a federal service that helps low-income individuals and their families afford health care. Although Medicaid is a federal program, eligibility requirements vary by state. If you qualify, Medicaid coverage is often retroactive for three months prior to the date you received medical care.
Don’t assume that your income will automatically disqualify you for assistance. According to U.S. News and World Report, some states provide Medicaid coverage up to 300 percent of the current poverty level. Thus, a family of four with an annual income of $63,000 would qualify for aid. Check with your state’s Department of Human Resources for eligibility requirements.
Negotiate the Bill
Insurance companies typically limit the amount they are willing to pay for a given service or procedure and often negotiate medical bills directly with providers. Many consumers, however, aren’t aware that they also share this ability. In an interview with CBS Moneywatch, Greg Volem, owner of a California health care testing company, claims that consumers may be able to reduce their medical debts up to 80 percent simply by calling their providers and haggling for a discount. Websites such as HospitalBlueBook.com, list the average cost of procedures in a given geographic area along with the discount an insurer could expect to receive. You can use this resource as a starting point for your negotiations (See References 4).
Payment Plan
You have the right to ask your provider for a payment plan. Call your provider and let the representative you speak with know that you cannot afford to pay off your medical debt in one lump sum. Many medical providers are well accustomed to consumer difficulty when paying off medical debts and will offer payment plans as a matter of general policy. If you cannot afford the payment plan your provider offers, propose a payment plan that you can afford. Payment plans are just as negotiable as the bill itself.
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