When you go to the doctor, it’s usually because you want to be healthier, and you want to feel better. But there’s a big side effect that is plaguing many Americans today. And that’s medical debt.
Have you ever found yourself in a medical situation but avoided going to the doctor because you were afraid of paying hundreds or even, $1,000s of dollars out of pocket? Many of us have been there. And it seems crazy to think that this is the reality for many Americans in this country.
This is a huge problem. According to CNBC, 32% of American workers have medical debt, and over half have defaulted on it. If you’re struggling to pay medical debt, there is some good news. There are things you can do right now to help alleviate your situation like setting up an interest free repayment plan, or even negotiating your balance.
Here are three things you need to know to help you deal with medical bills:
One: Ask for help. It’s not in our nature sometimes to ask for help. But in the case of medical debt, you absolutely should. Call up the clinic or hospital and ask what programs they offer to help individuals pay for medical care or what their financial assistance policy is. By the way, nonprofit hospitals are required by law to have these policies. If your income qualifies, the hospital may cut your bill in half or even forgive it altogether. A simple phone call, that may end up having huge returns, is well worth it.
Two: Don’t put medical debt on your credit card. Once you put medical debt on your credit card, it is no longer medical debt. It’s just regular credit card debt, which may cause you to lose out on any protections you could have had with medical debt. The hospital is now paid, so they no longer have any incentive to negotiate with you if you can’t make your payments. On top of that, credit card companies charge an average rate of 18%, while hospitals on the other hand offer interest free repayment plans. Sometimes you must pay back the debt within 12 to 18 months, but 0% interest sounds like a good deal. Here’s a shameless plug. Triangle’s credit card rate is 1.99% for 12 months, and after that the rate is well below the national average.
Three: Don’t pay the sticker price. Just like car dealerships, hospitals have different pricing. They have what is called the charge master rate on all their services and procedures. The charge master rate is much higher than the rate they charge insurance companies. This means that patients who are uninsured or underinsured get charged the rate on their charge master sheet, which is usually two to four times higher. Ask to pay the lower rate, the one negotiated with the insurance companies.
To learn more about what a fair price for a particular procedure is visit healthcarebluebook.com.
It can be scary to get an expensive medical bill that you weren’t expecting, so we hope these tips are useful and helpful in avoiding or paying down medical debt.
