If you can’t fully pay a medical bill on time, the steps below can stop medical collection agencies in their tracks:

• Check with your insurance company

Read the terms of your insurance policy carefully and then contact them to ensure you are responsible for the charge.

• Negotiate the amount you owe

Believe it or not, medical bills are often negotiable. Contact your medical provider to discuss your financial situation and try to lower the amount. Get any agreed-upon arrangement in writing to avoid any future discrepancies.

• Try working out a repayment plan

Your health care provider might be willing to let you pay your bills in monthly installments, which can make it more manageable. Be aware that any interest or fees the provider charges will be tacked onto the cost of the original bill.

• Hire a billing advocate

A medical billing advocate can sort through your bills and try to negotiate a settlement with health care providers and insurance companies on your behalf. Since up to 80% of medical bills contain at least one mistake, there is a good chance the advocate could find that you already paid the bill, you are being charged an incorrect amount or that you are being billed for services you never received. This service isn’t free, but there is a good chance it will save you time and money.

• Seek financial assistance

Depending on your income, you could qualify for financial assistance with:

• • Medicaid
  • Local or state programs
  • Religious groups
  • Nonprofit organizations
  • Charities

• Use a credit card as a last resort

If you run out of options, you might need to use your credit card. But it is important to note that you will incur interest on the amount you charge and don’t pay in full. You could also lose assets like your car or home if you secure the loan and default.

Even if a medical procedure or hospital stay is unexpected, being proactive and asking the right questions upfront can help you avoid overwhelming debt.

• Ask how much your insurance will cover


You wouldn’t buy a car without knowing the exact price, so why take a chance with your medical bills? If you have time beforehand, call your insurer and ask what will be covered before getting a procedure. If something is not covered, ask if there are alternative treatments. Of course, emergencies are an entirely different story.


• Record everything


Make a folder and use it to keep every medical bill statement, explanation of benefits (EOB) and message you send or receive from your insurance company. The EOB is an important document that includes a detailed list of costs, what your insurance covered and what you are responsible to pay.


• Don’t assume your medical bill is correct


Check each bill carefully to ensure that the procedure and provider are correct. If you don’t recognize a charge, checking the date can help you recall the appointment. Be aware that some providers might bill you under their associated hospital. If you can’t remember the doctor visit, call the provider to confirm it. If an expense seems unusually high, question its accuracy. Don’t be afraid to ask questions, mistakes happen!


• Negotiate the amount of your bill


Hospitals and the doctor’s office would prefer to receive some money rather than sending it off to collections. Call and ask if your bill can be reduced to an amount that is manageable for you. If you have a number in mind, suggest that amount. The worst they can say is “no.” You can also suggest paying off your bill in monthly installments. Most billing departments will work with you.


• Seek financial assistance


Even if you are covered by medical insurance, a planned procedure can surprise you with exorbitant out-of-pocket costs. And if you receive care from an out-of-network provider, you could be responsible for the total bill. Fortunately, many hospitals offer financial assistance programs to help patients cover their medical expenses. In addition, there are nonprofit organizations that provide assistance for chronic health conditions like cancer. You can find a state-by-state list of more than 100 financial assistance programs across the country at the U.S. Department of Health and Human Services (HHS).

• Don’t use your credit card to pay for part of a medical bill


Paying for your medical bill with a credit card should be your absolute—you have no other way to pay—last resort. To start with, you will lose your eligibility for a payment plan. It is also a risky strategy if you can’t cover the monthly balance in full because the high interest could greatly increase the cost in the end.

Heads up

Like most things, even the No Surprises Act has loopholes. Out-of-network providers may present you with a form labeled “Surprise Billing Protection Form.” Signing it waives your protections and instead provides consent for your treatment to be billed at out-of-network rates. Insist on seeing the full form before you ever sign anything.

If you need urgent care and you are forced to sign the form, you can fight the out-of-network charges after treatment:

• Write on the form that you are “signing under duress” and note the problem
• Take a photo of the form after you add comments
• Call your insurer or the provider before you pay a cent
• Use the federal hotline (1-800-985-3059) or website to report violations

Who is eligible for the No Suprises Act

Individuals enrolled in private or commercial health coverage are covered, including:

• Employment-based group health plans (both self-insured and fully insured)
• Individual or group health coverage on or outside the Federal or state-based exchanges
• Federal Employee Health Benefit (FEHB) health plans
• Non-federal governmental plans sponsored by state and local government employers
• Certain church plans within IRS jurisdiction
• Student health insurance coverage

• Does the statute of limitations excuse you from responsibility?


Before you pay an outstanding medical bill, it is important to determine exactly when the service or procedure was performed. If it is longer than the state’s statute of limitations where you were treated, you may be able to get a debt collection lawsuit thrown out of court. Please note that even if the law excuses you from paying the debt, it could still impact your credit score for 7 years.


• Should you ask to see an itemized bill?


Yes! Don’t just assume the bill is correct. Ask for an itemized bill and comb over every single charge, especially if it is for a hospital stay. You might find a procedure you didn’t have or a medicine that was never prescribed. For example, you could have several charges for physical therapy when your hospital stay was for a kidney stone. If something doesn’t sit right with you, call your provider or insurance company.


• Are the dates and providers correct?


After you have carefully looked over the charges, check to see if the dates and providers are correctly listed. This can be especially important for hospital stays when several specialists could visit you on any given day.


• How long do I have to dispute the debt?


It is important to act immediately on a medical debt you believe is incorrect or invalid. You only have 30 days to dispute it, according to the CFPB, and the countdown legally begins the day you receive notification from a debt collector. Once you dispute the debt, the collector can’t call or contact you until they have verified the debt for you in writing. But remember, if you don’t dispute the debt within 30 days, the collector has every right to assume it is valid.


• What’s the best way to overcome medical debt?


Medical debt consolidation (also called negotiation) is a good resource to deal with medical debt, especially if you have multiple creditors and accounts to handle. A debt relief company can help you negotiate your balances and combine it into one loan. This makes paying off your balances more manageable with a single monthly payment at a lower monthly amount. You can also save money with a lower interest rate and by avoiding additional charges for late fees and other costs. With the right financial plan, you can eliminate the stress of paying for health costs and focus on what matters most: getting healthy and remaining that way.