No one likes medical emergencies. They take a toll on you emotionally, physically, and financially. Even if your health is better, there is pressure on your mind. It is about the medical bill that you are going to get eventually.
If you have insurance, you might think you are safe from it. But it is far from the truth. An insurance company doesn’t cover the whole amount or some procedures, most of the time. Thus, you will have to pay for some services. Also, there are some hospital charges which no insurance policies cover. It may be a surprise for you, but expect a medical bill after a huge surgery or a trip to the ER. It can also lead to medical debt sometimes.
In this blog, we will understand what medical debt is and how a debtor can get rid of it?
Medical debt – a brief
When a patient doesn’t pay their bills on time due to insufficient funds, clash with an insurance firm, or not being aware of the bill can lead to debt. If the patient doesn’t pay the bill for over 60 days, a healthcare provider hires a medical debt collection agency to collect the debt.
It is one of the worst kinds of debt as it is unexpected and you don’t have a contract for it. A lot of people have gone bankrupt due to this.
Tips for paying medical debt off
1. Be calm
Getting huge medical bills at the time when you or your family member is suffering can be disturbing. But you need to stay calm so that you can take care of your family first. Don’t let the bills or numbers or the worry of impending debt intimidate you.
If you are careful about your finances, you will be able to find a way to pay the debt before a collection agency gets involved.
2. Check your bills for discrepancies
Before you make the final payment, you need to review every section of the bill. If there is something wrong or if you don’t understand a part of the bill, go clear it with the administration people.
Make sure you also ask the billing department to send the bill to the insurance company first. If the firm sends you a bill declining to pay the whole bill or some of it, ask them to clarify the reason.
When you know that everything is in order, start making a plan to pay off the debt.
3. Work on a budget
Everyone needs to make a budget for paying any kind of debt, it is the basic. So, create a budget that has includes:
Food
Rent
Medicines and other important things
Save some money in a different bank account
Use the savings to pay off the medical debt. If you have some other debt as well, divide the money so that you don’t have to worry about debt collectors. Or if it is not an urgent debt, as the creditor if you can pay the installment at a later date.
4. Negotiation
Negotiate with the healthcare collector or the debt collector. There is a high chance of them giving you a payment plan or lowering the cost.
Lastly, stay calm and consolidate all your debts together. Start by paying the one which is near the due date so that you don’t have to worry about collections.
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