A large medical bill is terrifying. You wonder how you will pay it and worry about the consequences if you don’t. Don’t panic. Take the following steps to handle the bill responsibly.
Take Out a Personal Loan
Personal loans allow you to borrow a lump sum of money upfront and pay it back in fixed monthly payments over a set repayment term. Interest rates are usually lower than medical credit cards. A credit union or peer-to-peer lender likely offers the most affordable rates when it comes to loans in Utah. Online lenders like Prosper, LendingClub, and BestEgg are also options for personal loans, but they tend to charge higher rates. To get approved and receive the best rates, you’ll need good to excellent credit.
Review Your Bill Carefully
Before taking out a loan, go through the medical bill line by line and make sure you understand all the charges. Look for any duplicate charges, services you didn’t receive, or errors. Contact the billing department if you find any discrepancies or have any questions. Ask them to explain the charges in detail. They may be able to adjust or remove some costs. Billing errors happen more than people realize.
Check Your Insurance Coverage
Next, verify with your health insurance company exactly what should have been covered. Make sure the provider properly submitted the claim and that your insurer paid out everything they were supposed to. You may need to resubmit the claim or file an appeal if it wasn’t processed correctly the first time. This could lower the total balance considerably.
Negotiate With the Healthcare Provider
Don’t be afraid to negotiate directly with the hospital or healthcare provider. Let them know you’re uninsured or underinsured and ask if they have any financial assistance programs, prompt pay discounts, or can offer a payment plan. Many providers are willing to negotiate and lower costs. You just have to ask.
Apply for Financial Assistance
Non-profit hospitals are required to have financial assistance programs, so ask about applying for these if the hospital is non-profit. They typically grant discounts based on your income and family size. You can also request financial aid from a for-profit hospital. The worst they can do is decline it.
Set Up a Payment Plan
If the balance is still unmanageable after the above steps, set up a payment plan. Most medical providers will work with you on a monthly payment schedule at little to no interest. Make sure the payments fit reasonably within your budget. Don’t commit to paying more each month than you can realistically afford.
Leverage Community Programs
Reach out to local non-profit and religious organizations. They may have programs that help with medical bills. It never hurts to ask. Organizations to try include churches, charities, community action programs, and social service agencies. There are more resources out there than many people realize, and the healthcare provider may be able to recommend others.
The key is staying calm and taking a systematic approach. Avoid sticking your head in the sand. Not paying will trash your credit and lead to collection calls. By following these steps, communicating with healthcare providers and insurers, and taking advantage of assistance programs, you can get your medical bills lowered to a point that works with your budget. Act quickly but thoughtfully, and you can handle that shocking medical bill without panic.
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