Millions of Americans have healthcare related debt. Yet there are ways to prevent medical debt from affecting your credit. Many people don’t realize that medical bills can be negotiated. To negotiate successfully you’ll first need to understand what your insurance will pay. Compare the explanation of benefits from your insurer with the bill from your healthcare provider to check for errors. Ask for an itemized bill. Then contact the billing office to request a reduced fee.
Hospitals and clinics typically base their discounted fees on income level, but times of financial hardship may also be taken into consideration. If, for some reason, they refuse to reduce the amount you owe, file an appeal or dispute. You file a dispute with the medical facility when there is an error on the bill. You file an appeal with your insurance company if you believe they didn’t cover the amount they should have.
Another way to prevent medical debt from affecting your credit would be to inquire about a payment plan. The goal of any medical provider, aside from caring for patients, is to make money. Most offer payment plans that would allow you to pay what you owe without the debt impacting your credit score. Preventing debt is always the best option for maintaining great credit.
Before receiving a planned procedure, ask what the cash pay option is. Yes, you can pay cash for labs, imaging, and even surgeries. Depending on your deductible, paying cash may make more financial sense than using insurance. Medical credit cards have become popular over the years. You may have heard of CareCredit. It is commonly used by Audiologists, hospitals, clinics, Chiropractors, and even dentists. You would apply for the medical credit card before receiving treatment. Then pay the bill with the card and make monthly payments until the debt is paid off. If you need any help in the financial planning department, contact Alloy Wealth! 800-689-3935