Medical debt is a significant headache in the United States. In the U.S., nearly 41% of adults have unpaid medical bills. Most young adults are not under Medicare and end up facing these expensive bills. If left without doing anything to fight against it, medical debt may be a lifetime consideration and affects one’s financial stability and credit score.
According to the Consumer Bankruptcy Project, most bankruptcy filers cited medical expenses as the cause of their financial plight. Declaring bankruptcy provides some relief; however, it will have a permanent impact on your credit record for up to 10 years, making you face potentially more difficulties in attaining loans for a car or mortgage later on.
Fortunately, there are various measures you can take to avoid, or at least minimize, the accumulation of medical debt. These costs can be better dealt with and the potential long-term effects may be mitigated.
1. Preventive Healthcare
The best way to avoid health care debt is the prevention of illness before the event. This can be achieved by focusing on two main aspects: good health and good health insurance coverage. Good health lowers the chances of requiring expensive treatments, while good insurance coverage will cover such expensive procedures in case they are needed.
For instance, exercise, especially walking for at least half an hour a day, has been proved to limit incidences of chronic diseases like heart disease and diabetes. More than that, the refusal to practice unhealthy engagements such as smoking and heavy drinking may limit the possibilities of catching diseases that will cost you millions to cure.
Preventive health care also includes visits to a provider. Most insurance pays for once-a-year check-ins, flu shots, and other basic tests. Take full advantage of these so anything that may be problematic can be detected early. Preventive care can steer you in the right direction so you don’t end up having to make serious trips to the emergency room or undergo costly treatments later on.
2. Research Before You Commit to Treatments
But preventive measures aside, you’ll always have an unexpected health condition. So, whenever your doctor gives you a prescription for treatment or a procedure, do some research on the treatment or medication.
You can start by consulting your insurance provider if the recommended course of treatment or medication falls under your plan. And if it does not, you can ask your doctor to provide you with other alternative treatments, which may be more affordable or covered under your plan.
Then locate evidence-based studies regarding the treatment’s effectiveness. Some of the good sources for credible information on different types of treatments are the NIH and PubMed. You will find this information useful in making informed decisions regarding your treatment.
Finally, you can request a second opinion if the cost or invasiveness of the treatment seems too high. A second opinion can either be used to confirm your diagnosis, evaluate alternative treatments, or even recommend less expensive options.
3. Study and Coordinate Your Hospital Bills
Be alert with your hospital bills so that there is no mistake. It is true that some errors in billing are common, and a small mistake can add up big sums to your bill. Organize your bills by making proper system and compare it with your statement of insurance for all charge accuracy.
However, if one bill is quite high, call the billing department of your health care provider and request an itemized list of services. Check for duplicate charges. It would keep you from paying more than you ought to.
4. Stay in Network Providers
If you do have insurance, you want to see in-network providers. Doctors and hospitals can run a much higher cost since your insurance company only covers so many of the bill for out-of-network services.
Always check with your insurance company whether the doctor or facility is in-network before booking an appointment or a procedure. You can also ask the staff at the clinic to cross-check this using your insurance cards. It’s just a small step that will keep you away from any unexpected out-of-network charges.
If you do not have health insurance, then seek community health centers that offer low-cost services according to the income level. Such clinics provide most of the primary health services at very low costs; hence you can maintain your routine healthcare services without over-spending.
5. Be aware of your Medical Billing Codes
Most of your medical bills will have complicated codes representing the nature of your condition and type of treatment you had. These are known as ICD or International Classification of Diseases codes, used to communicate with insurance companies. Knowing these codes can help you flag billing errors and verify what you were billed for.
For instance, if you had ever received treatment for diabetes, the statement would most likely have a code that identified the Type 2 diabetes, maybe “E11.” Every time you see a code you are unfamiliar with, look it up on line or ask your healthcare provider to explain it.
That will make you ready to state your case for charges or argue an error.
6. Bargain When You Can
Medical bills are usually negotiable if you’re paying privately. Begin by contacting your healthcare provider and explaining your financial situation. Many hospitals and clinics have some form of financial assistance or sliding scale payment based on income.
If you still feel your medical bill is too high, it might be worth asking for a low-interest or zero-interest payment plan.. Doing so might keep payments manageable without needing to get strapped with high-interest credit cards or personal loans.
7. Seek programs to help with financial aid
If one cannot afford his medical bills, he or she can try applying to finance programs that are available. Some hospitals have charity care programs in place for low-income people, while others charge depending on one’s income bracket. Some patients get financial assistance through specific nonprofit organizations offering grants or other resources for certain medical conditions.
You can also ask about government assistance, like Medicaid. Medicaid offers coverage through programs based on family size and income. Medicaid or state variants can really reduce your medical bills by qualifying you for the program.
8. Consolidation of Debt
For instance, if you already have several accumulated medical bills, you may consider consolidating them into a single loan. In the real world, you can do that using a debt consolidation loan that pools several debts into just one, hopefully with a lowered rate of interest. This will help you keep better track of your payments, and more importantly, save you money by avoiding unnecessary charges and interest.
However, be sure that the rate of interest of the newly consolidated amount is less than your existing rates. Also, make sure that you do not continue incurring more debt when paying off the consolidated loan.
9. Review Your Health Insurance Options Regularly
Your healthcare needs might change from time to time. Do this every year so that you can remain adequately covered by the insurance that you carry, given your situation at the time. And if you see some reason to believe your health or financial situation is going to change, you’ll want to switch over to a more comprehensive plan or a higher deductible.
Compare plans and see if there are better options available at open enrollment time. Balance those premiums, copays, and coverage to decide on an option that matches your budget and protects you better.
10. Debt Counseling Through Professionals
If you feel you are at your wits’ end trying to manage this piling up of medical debt even though you give it your best shot, then there’s certainly nothing wrong with looking for professional help. For example, debt settlement services, credit counselors, and even attorneys specializing in medical debt can be used to negotiate things with the creditors and create an affordable repayment plan for them.
All these services also make you understand your rights and options so that you make informed decisions without further hurting your credit.
Taking these proactive steps can minimize medical expenses and keep better control of your health and well-being.