Paying for Medical Bills

Many of our clients are surprised to learn that when they come into a large medical bill, they do not have to pay it all at once. Often times, there are different options to bring down the price and avoid high interest rates.

Use these tips for lowering your medical bill payments, instead of using a credit card and racking up high interest rates – and unnecessary stress.

Step 1: Review your bill

When you receive a large medical bill, always review it closely for any errors. Compare the bill with your health insurance’s explanation of benefits. If you have any questions, it’s best to call your insurance to settle any uncertainties. Unfortunately, we’ve seen many bills that have been coded incorrectly. In one case, our client was charged three times what they should have been charged for a certain procedure.

Step 2: Negotiate your bill

Everything in life is negotiable, including medical bills. Depending on the type of charge, you may be able to negotiate a lower price and meet your medical provider somewhere in the middle of what you were charged and what you can pay.

Step 3: Set up a payment plan

Once you have determined that your medical bill is accurate and as low as possible, if unable to pay it off in full, consider setting up a payment plan with your medical provider. Many providers offer monthly payment plans at a 0% interest rate. We recommend this route as opposed to putting the bill on a credit card with a much higher interest rate.

Step 4: Consider a medical credit card

If your provider doesn’t offer a payment plan, they might accept a medical credit card. Many of these cards have a 6 to 12-month interest-free plan, so this is a great option if you know you can pay it off while you are still not collecting interest. If not, you can be penalized with a deferred interest rate that can significantly increase your debt and lower your credit score.

Step 5: Hire a professional

Sometimes you just need to outsource. Even if hiring a financial planner or medical bill advocate seems expensive, they can actually help you save money in the long run. They can help you consider even more options like taking out a personal loan, opening an interest-free credit card, or applying for Medicaid and income-driven hardship plans.

Avoiding medical debt only works for so long. After a while, it can catch up to you, harm your credit score, and put delinquent medical debt on your credit record.

Read more about your options for paying off medical debt here: https://www.nerdwallet.com/article/finance/pay-medical-debt

If you have any questions about paying off debt, savings for medical expenses, or just have interest in improving your overall financial health and wellbeing, contact us today at Lisa@ARKFinancialWellness.com.