Medical bills were a major reason of 62% of bankruptcy in America in 2007. And, what’s more alarming, 80% of the medical debt file for bankruptcy in reality had health insurance. Thus, you can say medical debt is a big problem in USA. Medical bills are very serious and could cause a big impact on your finances. However, you do have options to deal with medical debt before it passes the bankruptcy line.
Pay attention on the bills
Buying head in sand won’t help you in any way. In fact, it could cause a lot of problem for you. Health care providers only collect the money for the starting months and then send the account to the collection company. At this point, the medicinal bill reaches the credit report, and thereby damages your future.
Try to keep the bill apart from the explanation of benefits
Check the mails to find you have a balance due. A number of times, the health insurance providers email you the explanation of benefits to explain what they have paid for you. This will fetch you heads up to medical bills which are coming to you. If only a part of the claim has been paid by the insurance company, the bill will arrive soon.
Check for the item which are not covered by insurance
Medical billing isn’t simple and mistakes are bound to happen. Ensure your physician has bills the insurance company for the correct facilities. Make sure you are proactive in clearing the mistakes as it will help you save hundreds of dollars.
Clear it out
You can pay out the small medical bills from your emergency fund or savings account. All you need to do is email the billing address enlisted on the medical bill. Re-check if you have mentioned the right account number on the check. If you aren’t paying the complete amount, then call the doctor’s office and speak about the payment arrangements.
Your payment arrangement
Make sure the hospital’s billing department knows that you are not avoiding the bill. If the insurance company has cleared their partly claim and you have to bear the rest of the amount, you can go for a payment plan. Review your budget and then accordingly make payment ever month.
Put the bill on your credit card
Though not a perfect idea, but when everything else fails, the only idea left is to put the unpaid medical bill on the credit card and save it from being presented to a collection company. Choose your credit card depending on the accessible credit, rate of interest and other specs. Do not go for medical loans or medical credit cards provided by the hospital. Make sure you check the credit card consolidation loan reviews before signing up for any company. You can even check out for prosper loans online and get information about them.
Handle medical debt collection
If the bill has gone to the collection agency, send them a cease and desist letter. It will stop them from contacting you about the debt. Take a look about what they mention in your credit report.