How to Pay Off Overdue Medical Bills

Even if you have medical insurance, it doesn’t cover everything. If you ever need to go through a costly medical procedure, you will have to pay out of your own pocket. In such cases, people who have a lower income may not be able to pay off medical bills right away.¹

You can get out of the sticky situation if you have emergency savings. However, if that amount is not enough to cover all your medical expenses, you will still be in medical debt. You might have to ask the medical service provider to arrange for a suitable repayment plan in such situations.

Tips for Paying Off Medical Bills

If you find yourself under heavy medical debts, you might not understand what to do. Here are some tips that will make paying off overdue medical bills easier for you:

1. Recheck Your Medical Bills

You must always recheck your medical bills to see if they bill has any mistakes. It is common for medical bills to charge double for a service that adds up the amount. Ask the medical provider to remove the double charges to know the actual amount you owe. Moreover, if any charges on the bill don’t make sense to you, ask the hospital or clinic personnel to explain them to you.

2. Make Negotiations

You can always negotiate with non-profit healthcare institutes to lower your medical debt. The act instructs healthcare providers to help low-income patients reduce their medical bills. You can find their policies online and if you are eligible, ask them to lower the bills.

Even if a hospital is not non-profit, you can still ask them to lower your bills. Almost 93% of the time, hospitals and healthcare providers accommodate and lower bills if you prove that your current financial situation won’t allow you to pay such excessive amounts.

3. Ask for a Suitable Repayment Plan

If the negotiations don’t work out in your favour, you can ask the hospital to create a favorable repayment plan for both you and the service provider. In most cases, the repayment plan has a low or no interest.

It is beneficial to the provider because they get back their money in instalments which is better than getting no money.

If you have the money to pay off the bills right away, ask the service provider to let you pay with cash or check. This reduces the credit card processing fee, and you get a discount.

4. Seek Help from a Credit Counselor

When your medical bills are overdue, your credit score can take a blow. And if you have many debts hanging over your head, it is better to prioritize them based on your needs. It is best to seek help from a credit counsellor in such cases. Not only will you get guidance about how to prioritize the debts, but you will also understand which course of action you should take to pay off overdue bills.

5. Consider Getting Instant Loans

You can get an instant loan even if you have a bad credit score. An instant loan may seem like a feasible solution if you have unpaid medical bills. All you need to do is find an instant loan lender and get the loan approved. If you provide your medical bills as proof, an instant loan can be approved within a day. You will have your money in 24 hours. At the same time, that may sound like an ideal solution when you’re in a financial pickle; keep in mind that such loans come with high-interest rates. Repaying them may be more challenging for you, so consider that factor as well.

6. Avoid Credit Card Debt

Never pay off medical bills with a credit card² if you don’t have enough money. After you make the payment, your interest will start accumulating, and credit cards generally have an average interest rate of more than 15%. If you can pay off the debt before the interest starts piling up, that’s fine. But if you can’t, paying off the credit card debt will be harder for you.

Final Thoughts

Medical debt can be a heavy burden, but you can get off the hook if you follow the correct practices. Always make sure you recheck your bill for any billing errors, as they are quite common. If the bills are accurate, consider negotiating with the service provider to get a discount or ask for a feasible repayment plan. You may also apply for a personal loan to repay the amount. If you don’t understand what to do, seek help from a credit counselor. 

1. Doty, Michelle M., Jennifer N. Edwards, and Alyssa L. Holmgren. “Seeing red: Americans driven into debt by medical bills.” The Commonwealth Fund 4 (2005): 1216092189. ↩︎
2. Hodson, Randy, Rachel E. Dwyer, and Lisa A. Neilson. “Credit card blues: The middle class and the hidden costs of easy credit.” The Sociological Quarterly 55.2 (2014): 315-340. ↩︎

Last Updated on March 16, 2024 by ayeshayusuf