There is nothing more devastating to your finances than medical bills. The simplest procedure can cost close to $1,000. If you don’t have health insurance, or have a major injury, you may find yourself drowning in debt. While the bills are enough to turn your stomach, you need to face them head-on. Thankfully, this isn’t as scary as it sounds. There are a few easy tips you can use for dealing with mounting medical bills.
Apply for Government Assistance
There are a number of state programs available across the country. The most popular is Medicaid, but there are several restrictions with the program. If you are 18-19 years old you can apply for the program without having children. After the age of 19, you will need to have children or be on disability to receive benefits. The reason Medicaid is worth applying for is that the program will pay off previous bills. If you don’t qualify for Medicaid, you may want to contact your local human services office about other programs. For example, in the state of North Carolina, people can qualify for free or reduced medical care based on their income.
Ask About a Payment Plan
As soon as you receive your medical bills, you need to request a payment plan. It’s not uncommon for doctor’s office to accept payments as low as $5 per month. The only downside is that you could end up paying for the debt for several years. The key is to pay as much as possible, while having a payment that you’re sure you can make each month.
Take Advantage of Income Based Help
Many hospitals offer help based on the patient’s income. For example, people who fall under the federal poverty line may be eligible to have their entire bill paid by the hospital. The exact rules vary from location to location, but it is well worth looking into. Simply call your medical provider and ask to speak to someone in billing, who will then be able to direct to you to the proper department. Do note that you will have to provide financial documents to prove your income.
Consider Consolidating the Debt
If you are in a position where you cannot handle all the payments, or high interest rates, you may want to consolidate your medical bills. With a consolidation loan, the debt is paid in full and you make payments on the amount paid. Just remember to check interest rates closely and consider whether or not the payment are lower than what you’re currently paying.
File Bankruptcy – A Last Resort
Last, but not least, bankruptcy may be the only option. There are times when medical bills reach well over $100,000 and you may never be able to recover. It’s true that bankruptcy can ruin your credit for several years, but it’s not that difficult to rebuild your credit with responsible use of credit cards and small personal loans.
There’s no denying the fact that medical bills can destroy your finances, but they don’t have to. Thanks to government, local and hospital programs you may be able to reduce or eliminate your medical bills. If not, consolidation or bankruptcy may be a good option. Regardless of which path you choose, you’ll finally be in control of your medical bills.
About the Author: Amy Brantley is a professional writer specializing in personal finance. She also writes about medical debt, credit repair, and getting bad credit loans for those with poor credit scores.