Managing Medical Bills: Your Guide to Payment Plans and Financial Assistance

Medical expenses can be overwhelming, especially when they come unexpectedly. Whether you’ve recently received medical care or have a procedure planned, figuring out how to pay your bill can be daunting. If you can afford to pay it in full, that’s great. But if the bill is too high for your budget, you may need to explore other options, such as medical bill payment plans. Here’s what you need to know about these plans and how to take advantage of them to stay on top of your finances.

Are There Payment Plans for Medical Bills?

Yes, medical bill payment plans are available and can be a lifesaver for many patients. These plans allow you to pay off what you owe over time rather than in a lump sum. The specifics of these plans can vary depending on the healthcare provider and the type of service you received.

Acute Care

Acute care involves short-term treatment typically associated with medical emergencies and other urgent health matters, often performed in a hospital. According to Matt Baltzer, product management director for Experian Health, “Acute care providers treat you and then ask for payment later.” In this setting, it is common to have no-interest plans with generous terms. Patients usually make payment arrangements directly with the healthcare provider, and there’s no credit check involved because the service has already been completed.

Elective or Semi-Elective Procedures

For non-emergency procedures planned in advance, financing options can be a bit more complex. Baltzer notes, “If it’s a clearly scheduled visit and elective to some extent, providers will ask for all or part of that to be paid upfront.” In such scenarios, you might need to apply for financing through a third-party provider like CareCredit. These payment plans generally aren’t interest-free but are often cheaper than using a credit card. Some healthcare providers partner with third-party financing companies to make procedures more affordable for patients on a referral basis.

While some providers may offer referrals, you can also find financing options on your own. However, these options are typically subject to credit approval, so you may have a hard time qualifying if your credit isn’t in great shape.

How to Pay for Medical Expenses When Money Is Tight

Getting on a medical bill payment plan won’t guarantee that you’ll be able to afford to pay off your balance. If you need more help paying medical bills, there are a few options you can consider.

First, request an itemized bill if you don’t already have one, and review it for double charges or services you didn’t receive. Also, ensure your insurance company paid everything it was supposed to. Depending on how healthcare providers code services, some may not get covered even if they should be. Check your benefits and call your insurance provider if you think a service or procedure should have been covered. When you talk to your insurance company, be sure to note who you talked to and what exactly was discussed.

If you can reduce your bill through these efforts, it could make a huge difference. If they don’t solve your problem, however, there are other ways to get help paying your medical debt.

Government Programs

Consider reaching out to government programs. For instance, you may qualify for Medicaid, which provides free or low-cost medical benefits to those who don’t make a lot of money. If you have kids, you may also be able to apply for the Children’s Health Insurance Program (CHIP), which will cover them for medical and dental care until they reach age 19.

Assistance Programs

Look to companies and nonprofit organizations for assistance programs. Some examples include:

• Pharmaceutical company patient assistance programs
• CancerCare for specific cancer diagnoses
• HealthWell Foundation for a variety of diseases
• Leukemia & Lymphoma Society for patients with those diseases
• Patient Access Network Foundation for several different diseases

Additionally, many states have laws that limit how much a hospital can charge if a patient’s income meets low-income criteria based on the poverty guidelines for that state.

How Hospitals Are Helping Consumers With Medical Bills

Personalized payment plans are the primary way hospitals and other healthcare providers assist patients with medical bills. The use of these plans has increased significantly in some organizations and is present in 1 in 5 outstanding patient accounts, according to Experian Health.

If you’re having a hard time even with a payment plan, hospitals have an incentive to help you pay your medical bills and may offer more help. “With consumers that are really in a difficult financial situation,” Baltzer says, “most providers—particularly nonprofit providers, but even some for-profit providers—offer financial assistance programs.” This assistance often comes in the form of a discount.

If you have medical bills and you’re struggling to get by, don’t hesitate to reach out to your healthcare provider to find out if relief is available. This is especially true if you don’t have insurance coverage. “If someone is truly uninsured, [they’ll receive] a discounted rate,” Baltzer says.

Avoid Letting Your Medical Bills Go Unpaid

Even if you don’t think you can pay your medical bills, try not to stop making payments altogether. If you leave your bill unpaid for too long, it could impact your credit. Most healthcare providers work with what they call bad debt agencies if your bills go unpaid for a while, say 90 days, Baltzer says. At that point, you may start getting calls from another company looking to collect the amount that you owe.

If your medical debt is over $500 and still isn’t paid a year after it first became past due, the collection agency can report it to the credit reporting agencies, and it could damage your credit score. So the sooner you reach out to your healthcare provider, the better.

At O1ne Mortgage, we understand that managing medical bills can be stressful. If you’re looking for financial solutions to help you navigate these expenses, give us a call at 213-732-3074. Our team is here to assist you with all your mortgage service needs, ensuring you have the support you need to manage your finances effectively.