Managing your medical bills.
Unpaid medical bills are the leading cause of bankruptcy in the United States as of 2007, according to a study published in the March 2009 American Journal of Medicine. The American Bankruptcy Institute (ABI) estimated that 1.5 million people would file for bankruptcy related to medical expenses by the close of 2010. Barbara Kimberlin-Murphy, a medical debt collection specialist, states that medical bankruptcy can be averted by communicating with your medical collections agency.
Don't Be Afraid To Ask For Help
Let people know you need help
Don't be intimidated by your medical collections agency or the amount that you owe them. Instead, immediately contact your physician or hospital either in person or in writing and let them know you are having financial difficulty. Ask your medical provider about reducing your bill based on your gross income and other economic factors, which you should further substantiate with documentation. The contact information should be on your bill.
Review Your Medical Bills For Accuracy
Scrutinize the details of your medical expenses.
Don't automatically assume that your medical bill is accurate. Request an itemized bill from your doctor or hospital. Review the details of all charges for accuracy before borrowing money and assuming the balance. Ask your medical provider(s) about financial assistance programs. Request that all of your medical bills be consolidated into one monthly statement with a single monthly payment.
Work Out a Payment Plan
Even a small monthly payment will keep the financial wolves at bay.
After you have consolidated your medical expenses and negotiated a reduction in the overall amount due, commit to a repayment plan with your doctor or hospital. Ask them for a "no interest" option. Get the agreement in writing so that there will be no discrepancy later. Don't agree to an "acceleration clause," which means that if you miss a monthly payment, you will then be expected to pay the full amount immediately. Don't sign a repayment agreement that makes you responsible for debt collection fees. Create a monthly payment that you can realistically and consistently repay. According to Kimberlin-Murphy, even a $5 monthly payment may legally protect you from wage garnishment, property liens and bankruptcy. Kimberlin-Murphy further states that in her 28 years as a medical collections agent, she frequently witnessed district court judges canceling medical debt to patients who made a good-faith effort to pay their debts.
Bankruptcy Should Be Your Last Resort
Learn your rights under the Fair Debt Collections Practice.
You would be wise to use bankruptcy as a last resort only, after you have explored and exhausted every other possible resource because it is the single worst thing you can do to your credit rating, negatively impacting it for up to 10 years. Using credit cards and bank loans should be your second to last resort as they come with high interest-rates, which will only put you further in debt.
Contact your local Medicaid office by visiting the Medicaid website at cms.gov to see if you may qualify for any additional benefits.
Ask your hospital about their charity care programs, which may alleviate all or part of your medical expenses if you are indigent or a special-needs family.
Tags: your medical, monthly payment, medical expenses, medical collections, your medical expenses, collections agency
