The Truth of Credit

  It’s not something that most people want to think about but it is a fact of life…medical bills.  Unforeseen medical bills are a possible reality in everyone’s future. Whether you have medical insurance or not, you may be forced to pay for medical treatment at some point in your life.  However, there are a few more options that you have with medical bills that you don’t have with traditional debt.

Understanding your Bill:

Personally, I did some medical billing in the past and it can be confusing. With UB 92s, EOB’s and Itemized Bills it’s a miracle anyone understands this stuff.  Don’t let these terms deter you, here is a site that may help you to understand your medical bills.

Dispute your Bill:

If for some reason you find an item on the bill that you do not agree with, be sure to dispute it.  If the hospital wants to play games, there is always a Consumer Protection Agency in every state. You can find them at  Consumer Protection.

Paying off your Debt and Protecting your Credit:

Once you’re O.K. with the bill and its time to pay, follow these guidelines.

• 1. Try to negotiate a payment plan- Notify the offices quickly, be sure to record the names and phone numbers of the people you deal with. Make sure you pay something; even a small amount to show good faith.
• 2. Get information on Charity Care.
• 3. Apply for Medicaid- Apply A.S.A.P., as with anything in dealing with the government the process can be extremely slow.
• 4. Don’t ignore your bills. Though tempting, this is not a good strategy. Hospitals and providers are more likely to negotiate with you if you contact them immediately.
• 5. Don’t transfer the debt to a credit card. I shouldn’t have to explain this; however it’s important to know that if you do transfer to a card it could disqualify you for Medicaid.

Dealing with Collection Agencies:

While hospitals are notoriously slow to hit your credit rating, they maybe be catching up. If your hospital or other health care provider has turned your bill over to a collection agency, you are protected against harassment by the Fair Debt Collection Practices Act (FDCPA) and of course HIPPA.

The TRUTH is that Medical Bills are just like any other debt. If you educate yourself you can not only save money but buy yourself some critical time to get the funds together. Just like a lawyer can make a deal and tie up a case up in court you can do the same with your bills.  Are you doing all you can do to pay your medical bills?

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