Struggling to Pay Your Doctor Bills? Here’s a Complete Guide

Have you ever found yourself struggling to pay a unexpectedly large doctor or hospital bill? You’re not alone. Medical bills are the number one cause of bankruptcy in the United States with an estimated 530000 families turning to bankruptcy each year due to medical bills.

Paying for healthcare can be confusing and overwhelming. Between large deductibles, copays, coinsurance and complex medical bills, it’s easy to fall behind. However, there are resources and strategies to make paying your doctor bills more manageable.

This complete guide breaks down the common challenges with paying doctor bills and provides actionable tips to take control of your healthcare expenses.

Understanding Your Medical Bills

The first step is unraveling the confusing world of medical billing. A single hospital stay or procedure can generate multiple bills from different providers that can be staggeringly expensive if you’re uninsured or underinsured.

Here are some key terms and components of medical bills you may receive

• Deductible: The amount you pay out-of-pocket before your insurance kicks in. Deductibles typically reset each year. A $2,000 deductible means you pay the first $2,000 of your healthcare expenses before insurance covers any portion.

• Copay: A flat fee you pay at the time of a doctor visit, procedure or prescription pickup, typically $10-$50. Copays don’t apply toward your deductible.

• Coinsurance Your share of costs after you meet your deductible often 10%-30%. So if your procedure costs $1000 after meeting your deductible, and you have 20% coinsurance, you would owe $200.

• Out-of-pocket max: The limit on how much you have to spend each year before your insurance covers 100% of your costs. This often ranges from $3,000-$8,000.

Understanding these key components helps you estimate what you might owe for any given procedure or hospital stay.

Seeking Financial Assistance

If your medical bills exceed your ability to pay, most hospitals and healthcare providers offer financial assistance programs that provide discounted or free care based on your income and assets.

Here are some main types of financial assistance programs:

• Charity care: Completely free hospital care for low-income uninsured patients. Each hospital sets its own eligibility guidelines.

• Discounted care: Reduced cost of services, often provided on a sliding scale based on income for uninsured or underinsured patients.

• Payment plans: Allows you to pay your bill in more affordable monthly installments over 6-12 months rather than upfront. Most providers offer this option.

• Medicaid: Government health coverage program for very low-income individuals. Since eligibility was expanded under the Affordable Care Act, more people qualify.

Applying for financial assistance can reduce or eliminate medical bills you can’t afford. Every dollar counts when facing large unexpected medical costs.

Negotiating and Settling Your Hospital Bill

If you don’t qualify for financial assistance programs, try negotiating your medical bills directly. Hospitals routinely charge uninsured patients more for services than what they accept as payment from insurance companies.

You can often negotiate much lower pricing, discounted rates and flexible payment plans on large medical bills by following these tips:

• Review your bills closely and ensure there aren’t duplicate charges or billing errors. Mistakes are common and you shouldn’t pay for anything incorrectly billed.
• Call the hospital billing department. Explain your financial hardship and inability to pay the full amount. Ask if they can offer a discount or payment plan.
• Offer to pay cash at a steep discount, often 30% or more, to settle the bill. Take the emotion out of it and approach it as a business transaction.
• Get everything in writing first before sending payment or signing anything.

With persistence and the right approach, you can often settle medical bills for much less than originally billed.

Additional Ways to Pay Doctor Bills

If the bill is still unaffordable even after the above steps, here are a few more options to consider:

• Use a medical credit card – There are special credit cards designed to finance large medical expenses over fixed payment plans at zero or low interest. Just be cautious of high fees or interest down the road.
• Borrow from a retirement account – You may be able to take a loan or early withdrawal from a 401k or IRA to pay medical bills without penalty. This should only be considered as a last resort.
• Use a crowdfunding site – Creating a campaign on GoFundMe, GiveForward and other fundraising sites to ask family, friends and the community for help with medical bills.
• Tap home equity – In some cases you may qualify to take out a second mortgage, home equity loan or home equity line of credit based on available equity in your home to pay large medical bills.

While scary and stressful, unpaid doctor bills can be tackled with the right approach and persistence. Seek available financial assistance, negotiate with hospitals, set up affordable payment plans and explore other borrowing options if needed.

With the comprehensive guidance, you can take control and effectively manage paying for healthcare expenses for you or your family.