Medical bills are one of the least planned-for causes of accumulating debt. While insurance can cover a portion of treatments, it often does not cover everything, especially in the event of a serious diagnosis or unexpected emergency. If you are struggling to pay off medical debt, here are some financial strategies that could help.
File for Bankruptcy
This is reserved for those with more serious medical debt, often accumulating through serious chronic conditions, conditions that require extensive medical treatment like cancer, or emergency situations that land someone in long-term care and hospitalization. Those with minor medical debt may find a better alternative to relieving what they owe.
If you are at your wit’s end and are barely getting by without the debt, this may be the best option for you. Before making an official decision to file for bankruptcy, consult with a bankruptcy attorney who can also provide legal advice on whether there are alternatives available to you than filing, such as debt consolidation.
Every state abides by their own regulations alongside federal regulations for filing for bankruptcy. For example, if you are filing for Chapter 13 bankruptcy in Reading, Pennsylvania, you will want to get help from a Berks County bankruptcy lawyer who can help you file through the United States Bankruptcy Court in the Eastern District of Pennsylvania.
Request an Itemized Bill
Before simply accepting that you owe money for medical services, request an itemized bill. This bill offers a breakdown of each exact cost that you are being charged for, including fees, costs of each medication administered, etc. This can help you double check that the hospital or medical provider did not charge for any errors or duplicate fees.
Apply for Financial Aid
Depending on the cause of your medical bills, there may be financial aid available to you. There are plenty of charities nationwide that help raise money towards lowering the medical bills of those in most need. For example, CancerCare offers limited financial relief for cancer-related costs. Check if you qualify for any financial assistance or bill forgiveness programs and apply for ones where you are eligible. While this may not cover the cost of all of your medical debt, it can offer serious financial relief by lowering the amount you owe.
Negotiate a Debt Settlement
For those who cannot pay off their medical debt, debt settlement may be an option. This involves negotiating with creditors by offering to pay a reduced lump sum to relieve your debt. Consult with an experienced debt relief attorney to determine whether this is the right option for you and whether this can help relieve your medical debts.
Review Your Explanation of Benefits (EOB)
Your insurance will have provided you with an Explanation of Benefits (EOB) when you enrolled in health insurance, whether online, through their app, or through physical paperwork mailed to you. This explains the costs that the insurance will cover towards medical expenses. When you receive a medical bill, match your medical bill to what is detailed in your EOB to determine whether there were any errors or unused benefits that could lower the cost you owe. If you are in unmanageable medical debt and assessing all your options, your bankruptcy or debt-relief attorney may be able to help you review your EOB against your medical bills.
Unpaid medical bills could result in a hurt credit score, debt collection calls, or even legal action taken against you through a lawsuit or wage garnishment. Don’t wait until the medical debt becomes too manageable. Take action to protect your finances today.
Related Article:
- How Victims of Medical Malpractice Can Fight Back
- Key Signs That Your Insurance Company Is Acting in Bad Faith
- What Are the Best Methods for Weatherproofing an Outdoor Kitchen?
