Does one need a strategy to cover their medical expenses? Resolving medical debt is more complex than resolving loan or credit card debt. There is more room for negotiating the repayment terms and lowering the total amount one owes.
So, whether it’s hiring a medical bill advocate, having a payment plan, or using a medical credit card, here are some options for paying off one’s medical bills.
Payment Plan
Many medical providers work with people to set up a no- or low-interest payment plan for their medical bills. This is one of the most common ways to pay off a bill one can’t afford all at once. The payment plan’s minimum amount will be determined by the amount of the bill and the terms that are negotiated. Typically, the bill is divided into several equal payments over a few months until the entire amount is paid.
Medical Credit Card
Providers can also assist people in applying for medical credit cards. While medical credit cards typically have an interest-free period of six to twelve months, one may be charged a deferred interest rate if they do not pay off the entire balance within that time. Another risk associated with credit cards is that late or missed payments can harm one’s credit score.
Unsecured Credit Options
– Personal loans
A medical loan for healthcare expenses can help in consolidating medical bills or paying for emergency or planned procedures. A personal loan may be the best option after all other options have been exhausted. Still, it also carries the risk of additional interest, fees, and a negative impact on credit scores in case of missed payments. Loan amounts range between $1,000 and $100,000.
– 0 percent interest credit card
A 0 percent interest credit card may be a good option if a person is not eligible for a payment plan or medical credit card. To qualify, they will need to have good to excellent credit. The balance must be paid before the promotional interest rate expires and the regular interest rate takes effect. Missed payments can also harm one’s credit score.
Medical Bill Advocate
If a person has had a lengthy hospital stay or an invasive procedure, then they’re probably facing a ton of medical bills.
A medical bill advocate helps one negotiate their medical bills. These advocates are medical billing experts who understand how to read health care bills and common procedure costs. They can identify potential errors and assist people in lowering the amount they owe.
When choosing a billing advocate, one must be cautious because predators pose as advocates but steal people’s money or identity. Before sharing information, one must be sure of who they are talking to and how they work.
Income-Driven Hardship Plan
One might qualify for an income-driven hardship plan if they have a low income and high medical expenses.
Like a standard payment plan, an income-driven hardship plan can divide the total amount owed into more manageable, regular payments or even forgive the debt entirely. One can check with their provider to see if such a plan is available; all non-profit hospitals provide some form of charity care.
