Medical debt is a big problem in the United States, with 41% of American adults currently carrying this type of debt. Because Medicare usually covers seniors, most people with medical debts are younger. If not managed correctly, these bills can become a lifelong problem.
The Consumer Bankruptcy Project surveyed people who filed for bankruptcy. They found that most people said medical bills caused their money problems. Filing for bankruptcy can help with these debts. However, it will hurt your credit record for up to 10 years. This makes it very hard to get a mortgage or car loan.
Medical debt is very common, but you can take steps to prevent it. Read on to learn more about how to avoid medical debt.
Focus on Disease Prevention
The best way to handle medical debt is to prevent it. First, do your best to stay healthy and lower your chance of needing costly treatments. Second, buy insurance that will cover expensive treatments.
To improve your health, exercise daily and eat healthy foods. A Harvard study showed that as little as 15 minutes per week of vigorous physical activity is enough to lower your death risk by 17%. Eating more plant-based foods can also lower heart disease risk.
Moreover, most people know that quitting smoking and drinking less alcohol can lower their chances of developing diseases that require a lot of medical care.
Another way to avoid serious health issues is to manage your stress. Too much stress can cause physical problems like headaches and stomach problems. Financial challenges are a common stressor. Some ways to cope are to implement a budget, set up an emergency fund, or talk with a credit counselor.
Prevention also means seeing a doctor regularly. An insurance policy can help you pay for this. Qualified Health Plans (QHPs) offer free checkups, shots, and yearly doctor’s visits. You can find them most commonly through your employer or the Health Insurance Marketplace.
QHPs meet Affordable Care Act requirements, including coverage for the 10 essential health benefits and acceptance of pre-existing conditions
Do Your Homework on Treatment Options
Even if you try to prevent illness, you can still get chronic conditions. These will need treatment from doctors. After you learn about treatment options, you can take a few steps to help you decide how to move forward:
- Check with your insurance company to see if they cover the treatment, medicine, or procedure.
- Look at studies about your treatment. Find out about success rates and other options. Studies in peer-reviewed medical journals are the best places for this research.
- Think about getting a second opinion from another doctor before agreeing to the treatment plan. They can confirm the diagnosis and offer more information about the treatment or alternatives.
Ultimately, you should rely on medical professionals for advice on diagnosis and treatment.
Pay Attention to Your Medical Bills
Stay informed by reviewing all medical bills. Keep a file of your statements. Make sure you are not charged twice and that all information is correct.
You can also look into medical bill relief options. Some programs can help you manage medical debts so that they don’t become too much to handle.
You may need to keep your medical bills for tax deductions, bill disputes, or insurance claims. Keep paper records of your medical bills in a safe place. Also, make sure you can access your digital records.
Stay in Your Health Insurance Provider Network
If you have insurance, make sure your providers are in your insurance network. A common mistake is going to a provider that is not covered by your insurance. If you do, you could have to pay much more.
You can avoid this problem by calling your insurance company to make sure they cover the place you plan to visit. You can also take your insurance card to your appointment. This lets the receptionist check the codes on your card to make sure they accept your coverage.
If you don’t have insurance, you can go to community health clinics. They offer free or cheap care for most basic illnesses.
Research Medical Billing Codes
International Classification of Diseases (ICD) codes are kept by the World Health Organization (WHO). These codes tell medical professionals what conditions you have. E08, for example, is the code for diabetes caused by another condition. E08.21 is the code for diabetes with diabetic neuropathy.
These codes give exact details about your condition. They are important for understanding your diseases. They can also help you check insurance coverage to make sure your bill is correct.
Negotiate Your Medical Costs
You can sometimes negotiate prices with a healthcare provider. You can also ask them to work with the insurance company to find acceptable treatments that fit your policy.
Most providers will also work with patients to set up a payment plan with no or low interest. This will help you avoid using a loan or credit card. Ultimately, providers would rather work with you to find a solution than refer your account to a collections agency.
Get Professional Help
No matter how proactive you are, you may deal with high costs despite your best efforts. If you have a big bill, know that you have options for handling medical debt. You can:
- Work with a debt settlement service to negotiate lower monthly payments.
- Switch to an insurance policy that gives better coverage.
- Consolidate your debts by combining medical debt and credit card debt into one new loan.
Final Thoughts
Medical debt can feel overwhelming, but you have options. By taking proactive steps, you can reduce your risk and handle costs more effectively. Staying informed and seeking financial help when needed can make a big difference.
The healthcare system can be complex, but you don’t have to navigate it alone. Ask questions, review bills, and use available resources to manage expenses. Small, consistent efforts can help you stay in control of your medical costs.
