How to Tackle a Huge Medical Bill without Being Forced into Bankruptcy
Despite reports in the media almost every day regarding people getting slapped with huge medical bills, there is a common tendency to think that it happens only to other people. Unfortunately, crippling medical debt is far more common than you think and according to www.cnbc.com, itis today the single largest reason for people filing for bankruptcies in America.
Increasing Competitiveness Can Help You to Save On Costs
Since the disparity in pricing is now very easily established with the help of information found online, not only does it help patients to choose a provider of their preference but also it automatically makes all service providers more competitive. Many hospitals do agree to reduce the charges, but you need to ask them directly and even bargain with them citing what other providers charge and even your own financial limitations.
Negotiate Reductions but Don’t Forget to Ask for Assistance
If doctors or hospitals are convinced that you cannot afford to pay the bill, they may settle for even half the amount, as then they do not have to turn the account over to collection agencies. Even if hard bargaining is something that you balk at, you can find hospitals willing to work with you to offer payment plans in addition to a reasonable discount. Some hospitals even have special hardship assistance schemes that are meant to help out those with low incomes; but even if you are not exactly poverty-stricken, you may find them willing to extend the scheme to you, but you do need to ask. If you have reasons to believe that you are being taken for a ride and the hospital bills are unreasonable or even erroneous, you can take the help of patient advocacy and bill-mediation services that can help you to reduce your bills, though at a hefty cost of around 30% of your savings. You can also read debt settlement reviewsto find a good financial help provider.
How to Handle Hefty Hospital Bills
Challenging a large hospital bill is not an easy task; the bills are full of codes that you may find impossible to decipher and typically, you will find it very difficult and aggravating to get through to the people at the billing desk. As difficult and complicated the process might be it is important that you do not ignore the hospital bills if you want to get the amount reduced or work out a plan that allows you to pay over some time. Remember, the clock is ticking and most hospitals will turn over unpaid accounts to their collection agents after a period of ninety days. If this happens not only will you end up being harassed by the debt collectors but also damage your credit report that may make accessing funds difficult or more expensive in the future. Some tips from experts on handling large medical bills:
Get All the Bills Organized
If you have received treatment for long or undergone complex and multiple procedures, it is more than likely that you will receive a number of bills from various places. A number of doctors who may have attended to you, the lab that conducted the diagnostic tests, the hospital, and even the ambulance agency that you may have used will be raising their bills. It may be easier to keep track of all the bills on a simple computer spreadsheet. If you know you should be getting a bill that you have not as yet, instead of thinking that somebody had forgotten to raise the bill, it is better you yourself call the service provider and ask because the last thing you want is to get a hefty bill that may throw all your planning off-track.
Take Out a Personal Loan
If you find yourself with a large medical bill, you could consider taking out a personal loan to cover the cost, allowing you to pay the bill in full. A personal loan often has low interest rates and a quick and easy online application process, making it a popular option for some. You should always ensure that you can make the required monthly payments, and this can be checked using a personal loan calculator online. Online calculators allow you to calculate monthly repayment costs and how much interest you will pay over the loan period. You can click here to read further information.
Review the Bills Diligently
Hospital billing sections are very busy and the bills can often contain charges for services that you have not availed of or been overcharged. In particular, check whether you have been billed for the entire day when you have been discharged in the morning and been charged for medicines that were prescribed but brought by you. Make it a point to dispute charges for routine supplies like gloves, sheets, gowns, etc. because they are supposed to be included along with the room charge. If you can’t decipher the hospital bill and feel it is too high, you can hire a medical bill advocate to examine it and negotiate with the hospital on your behalf.
Challenge the Insurance Company If Required
Go over thoroughly all charges that the insurance company has rejected on various grounds and verify if indeed they are correct in doing so. Even though insurance companies can look impenetrable, disputing decisions with determination often work and you can get them to overturn their earlier decisions.
Negotiate Hard with the Hospital
Once you know what your bill amount actually is, you need to figure out if you can pay it outright or require more time. If your procedure was not covered by your insurance company, you can tell the hospital you will pay only the rate that has been negotiated with the insurance company; this is usually far less than the amount you would have been charged as an uninsured patient. Also, check what the procedure costs at other places and use it to reduce your bill. The Medicare rates can be used to start the negotiation as these are typically very low. If you can convince them that you do not have the capability to pay and your only alternative is to file for bankruptcy, you can reduce your bill to around half as the hospital would have sold it to the collection agency for even less. If the reduction of the bill amount is not particularly high and it is not possible for you to pay it at one go, you can ask the hospital for a payment plan, take a personal loan or take advantage of a zero-percent balance transfer offer by a credit card issuer.
Conclusion
It is important for you to appreciate that at the end of the day, you will still have to pay the hospital even if you are successful in reducing the amount. If your account is turned over for collections, it will damage your credit and you may even have to consider filing for bankruptcy.
