Health care is expensive. Many Americans have issues paying for their hospital bills. An emergency visit or a very unexpected illness may have put you into medical debt because your health insurance may not have covered everything. Having adequate health insurance is the first step in avoiding paying off a heft hospital bill, but there are some other solutions if you don’t know how you’ll pay off your hospital bill.
This blog is useful for anyone with an outstanding or expensive hospital bill they’re having issues paying off. We’ll cover everything you need to know about paying an outstanding hospital bill, such as:
- What happens when bills go unpaid.
- Checking your medical bills for errors.
- Negotiating medical bills or setting up a payment plan.
- Using Charity Care to get help paying for your medical bills.
- Preventative measures to avoid medical debt.
Also Read: Open Enrollment 2021: Changes You Need to Know About
What Happens If You Don’t Pay Your Hospital Bill
Just because you received a hospital bill won’t affect your credit and neither does paying the bill a few days late. Your credit only becomes an issue when a credit collector becomes involved. Unpaid medical bills will go on your credit report even if it takes years to show up.
Debt doesn’t go away just by ignoring it. You risk several major financial issues just by ignoring your hospital bill. If you don’t pay off your hospital bill, you’re likely going to be bombarded with calls and letters from debt collectors. The real trouble starts when a debt collector does become involved. Failing to pay your hospital bill can result in:
- Late fees
- Notices from collections
- Negative credit scores
- Lawsuits
There are some states that won’t allow hospitals to charge you late fees. If you live in the following states, you won’t have to worry about late fees if you live in California, Minnesota, New York, or Illinois.
Check Your Bill For Errors
Don’t assume your bill reflects your hospital visit accurately. Medical bills contain errors like being charged twice for the same procedure or something for the wrong diagnosis. Oftentimes, you’ll spot procedures that have convoluted names which sometimes makes it hard for patients to understand.
Ask for an itemized list of procedures from your hospital. You can ask the hospital or care facility to put a hold on your account while you do this. On your own or with a patient advocate, go over your itemized hospital bill common errors on a hospital bill include:
- Incorrect diagnosis
- Services you’ve never received
- Duplicate charges
- Charges covered by your health insurance
- Inaccurate procedure duration
Bring any errors directly to your hospital’s billing department or your insurer. Billing errors are incredibly common, especially if you had an emergency procedure or needed multiple of the same procedure.
If your insurance company didn’t cover what they were supposed to, call them right away. Alternatively, if you need help with some of the medical jargon, you can call your insurer to explain what each item on your bill means.
To get in touch with one of our partnered health insurers, call QuotePurple at any time.
Also Read: Step-By-Step Guide To Prepare For Open Enrollment (2021)
Negotiating a Payment Plan
Once you figured out what you need to pay for, call the hospital billing office or the debt collector. Be sure to note the date, time, and the representative you’re speaking with. Review some options that could make paying your bill more affordable. Some payment options that can make paying off debt easier include a zero-interest or low-interest payment plan or paying the insurance rate if something isn’t covered by insurance.
If you’re below the poverty line and you went to a non-profit hospital, you could qualify for low-income assistance. This is called Charity Care.
Charity Care For Outstanding Bills
Non-profit hospitals must provide financial assistance called Charity Care for low-income patients. Surprisingly, most hospitals are non-profits and you can easily find the guidelines online. Charity Care helps cover the cost of any “medically necessary” treatments including overnight stays and emergency care. To qualify, you must provide proof of income such as tax returns and pay stubs.
If you have Medicaid, Medicare, or other medical insurance, you must use those benefits first.
Also Read: How Your Income Affects Your Medicare (2021)
How much Charity Care you receive depends on your income and household size. You can review the requirements online by searching the name of your hospital plus financial assistance. For example, here’s the Charity Care policy for the MayoClinic. Search for their financial assistance or Charity Care policy. There, you’ll find a sliding scale that explains that if your household income is more than 100% of the Federal Poverty Level, your hospital bill may be forgiven.
Preventing Medical Debt
The easiest way to prevent medical debt is to ensure you have adequate coverage. If part of the reason why you can’t pay off your hospital bill is that your insurance won’t cover your expenses, it might be time to switch.
Using an unbiased compare tool like QuotePurple allows you to call competing health insurance providers directly. When you call, the insurance companies compete for your call, in other words, they’re eager to help you find the best solution for your medical needs.
To get in touch with one of our partners, call QuotePurple today.
Also Read: First-Timers Guide To Health Insurance (With Examples)