| Everyone knows that unpaid medical bills cause | | | | medical debt and you are not on a payment plan, |
| significant financial struggle and millions of | | | | a loan allows you to only pay off the medical debt |
| bankruptcies a year. If you have medical debt, or | | | | right away. However, you end up paying more in |
| think you were unreasonably charged, you are | | | | the long run due to the interest. Usually a personal |
| common, and there are many different options | | | | loan is more difficult to obtain than a home equity |
| out there to pursue. Your options are much | | | | loan or refinance; but if you can't make a house |
| stronger when you can pay (even small | | | | payment you put your house in jeopardy. This is |
| payments), but if you can't, that does not mean | | | | a last resort option and should be utilized only if |
| you face bankruptcy. One thing is for sure, being | | | | you can obtain a lower interest rate than your |
| proactive and learning what your options are is a | | | | current (5% at least better). |
| step in the right direction and a way to reduce | | | | Options If You Cannot Pay: |
| your bills. | | | | 1. Contact Government Funded Organizations - |
| Options If You Can Pay: | | | | Medicaid is a government program that you may |
| 1. Pay in Full or Larger Payments but Pay Less - | | | | qualify for to help with medical bills and is designed |
| Many doctors, medical clinics, and hospitals offer | | | | by your State. There are many factors for |
| large percent discounts (10-30% reduction | | | | eligibility, and usually they help reduce future |
| sometimes) if you can pay in full or in a small | | | | medicals bills rather than cover those before |
| number of large payments. The incentives help | | | | coverage. Medicaid does have coverage for |
| your medical provider keep their accounts | | | | patients with reasonable income so long as their |
| receivable (what people owe them) low and | | | | bills are high as well. Each state should have a |
| increase their chances of getting paid. However, | | | | website for information. Also, if you have children |
| make sure to not jump and do this right away, | | | | each state has a SCHIP or State Children's Health |
| because you might be able to negotiate the total | | | | Insurance Plan that your child may be eligible for. |
| amount done if some charges and fees are in | | | | 2. Contact Financial Aid Contact or Charities - |
| error or unreasonable. | | | | Many hospitals and medical clinics are non-profit. In |
| 2. Debt Negotiation Services Specifically For | | | | order for them to maintain that status, they have |
| Medical bills - If you work within the industry, then | | | | to provide a certain amount of services for free. |
| you know what reasonable charges are for | | | | Therefore, many hospitals and clinics offer |
| certain medical procedures, and how the insurance | | | | financial aid that you must qualify for (based on |
| companies work. If you don't, like most of us, | | | | income, savings etc). Furthermore, many charities |
| then you will need to research this information | | | | are available outside the medical facility that can |
| and learn how to negotiate. Therefore, to make | | | | provide assistance in many cases. |
| sure you save the most amount of money and | | | | Consequently, if you can make minimum |
| time, some companies provide medical bill review | | | | payments, then you are in a better set of options |
| and negotiation on your behalf. They are more | | | | then if you cannot pay at all. Medical debt |
| successful and get large reductions because they | | | | negotiation is the most effective and timely option |
| know the industry. Be sure to work with no-risk | | | | but is not exclusive. Unfortunately, this type of |
| or contingency fee based companies because | | | | negotiation requires a lot of research which leads |
| there is no percentage of savings fee if you don't | | | | to you working with a debt reduction company. |
| save (so it's a win-win). | | | | However, make sure you debt expert or |
| 3. Consolidate Your Medical Debt With a Loan - | | | | company specializes in medical debt and operates |
| This is not always the best option should always | | | | under a contingency basis. |
| come after steps 1 or 2 above. If you have | | | | |