My Medical Bill Is So Expensive... What Do I Do?

Whatever your reason is for needing care, planned or not, it can be pretty easy to build a mountain of medical debt. From that $90 Tylenol, to the $53 pair of gloves - that emergency room visit can soon become your worst nightmare.

Let’s take a deep breath and break down some options.

Contact the Hospital ASAP ☎️

Paying medical bills is a struggle for a lot of people, meaning there is a path to figure out what to do about them.

First of all, contact the hospital where you received care and ask if they have a financial assistance policy/charity care. A lot of times, there are programs in tact by the healthcare provider for those large medical bills that are sent out. Most of them are income dependent, but if you qualify you might get your bill knocked in half or even completely forgiven (what a dream ☁️).

Don’t Pay the List Price 🏷️

Hospitals usually bill you the “hospital chargemaster” rate, which is the list price used to negotiate a higher price with insurance companies. This rate is highly inflated, knocking the price of the care you received up to an average of 4 times the actual cost.

If you are uninsured you are almost always charged the “hospital chargemaster rate”. Most of the time, this rate that appears on your bill is significantly higher than what insurance companies end up paying on claims. As a result, many hospitals will offer discounts and lower rates to uninsured patients to bring your bill down to a more realistic and manageable level.

For some more information on typical costs of procedures/ visits, visit the Healthcare Bluebook.

Negotiate. Negotiate. Negotiate. 🙌

Most of the time, you are able to negotiate the price of your bill down on your own behalf. Make sure you have received an itemized copy of the bill to verify all charges look accurate. Ask these questions on the phone to try to negotiate your list price:

• What do insurance companies normally pay for this type of visit/procedure?
• What is the lower price?
• Am I eligible for a payment plan?
• What did insurance cover and what didn’t it (if applicable)?

Fingers crossed, you will get offered a bill reduction. Most of the time, the healthcare provider will even offer you a payment plan with the lowered price.

Be Super Persistent 🤭

Don’t let down. Sometimes it can be tough to get in contact with the right person, or even the healthcare provider themselves. Keep trying to negotiate until you receive a deal that you can afford. At all costs, do not pay the list price right off the bat.

In some cases, it is worth it to get in touch with a non-profit advocate to help you deal with the process.

Do Not Put Medical Debt on a Credit Card 🙅‍♂️

Moving your medical debt onto a credit card shifts your bill from a low-cost interest rate (or maybe even none at all) to a high-cost interest rate.

If you do not have enough cash to cover the medical bill right off the bat, it is very dangerous to put your medical bill on your credit card. You are creating a big risk of racking up interest charges and damaging your credit score due to high utilization.

Your health and your life are more important than any credit score, but view putting medical debt on a credit card as your last resort.

Bottom Line ❗

If you are facing a mountain of medical debt, know that you have options available to you. Before paying the bill right off the bat, or even worse using a credit card, make sure to talk to the billing department at the healthcare provider where you received care. At all costs, avoid paying the list price.

Working through medical debt is not fun, but remember that unlike other debts, it is negotiable 💪!