How can a medical debt relief plan help me?
A medical debt relief plan helps you negotiate medical bill balances to reduce your financial toxicity.
What is medical debt?
According to NPR, “Nationwide, about 1 in 5 indebted adults who have had cancer or have a family member who’s been sick say they owe $10,000 or more, according to the KFF poll. Those dealing with cancer are also more likely than others with health care debt to owe large sums and to say they don’t expect to ever pay them off.”
Medical debt is unsecured debt that can be negotiated, and per HIPPA it is unlawful for a third-party payor to have access to your medical information.
How to Create a Medical Debt Relief Plan:
Know your prices on procedures and office visits by asking open-ended questions such as what waivers, discounts, or relief plans are available to you. (Waivers may be known as adjustments, and relief plans may be called charity care.)
Question Examples:
- What discounts do you have for financial hardship?
- What fees can be waived?
- How can I apply for financial assistance?
Suggest charging the rate Medicare would pay for services. Medicare rates are fair and less than what providers charge patients or commercial insurance plans.
Ask about paying monthly installments without interest (you pay what you can until the bill is paid off).
Do everything in writing (electronic if possible). This creates a paper trail confirming discussions and payment agreements for both parties involved.
Pay something on the bill each month if you can (pay what you can afford and check the payment policies of the facility or provider). In some cases, facilities will STILL report your account to collections if not paid in full, EVEN if an agreement has been made for monthly payments. Always ask the billing department or whoever is collecting your payments about the policy for payment and if the account will be sent to collections.
When applying for financial assistance, add in a letter of financial hardship and be sure to include the following points in the letter:
- Proof of verifiable hardship is a disability that prevents you from working.
- Explain your circumstances (the reason why you are experiencing financial hardship).
- Explain why you weren’t working or if you had a reduction in hours due to your medical condition.
- Spouse’s hardship – (if applies)
- Keep your letter short – 1 page
- Include financial statements that show your income and expenses.
- Be polite.
- Explain hardship, why & how it links to the medical condition in question.
- Offer a payment plan YOU can afford. (You can counter a proposed monthly payment if the amount is too high for your budget.)
- State when you will make the 1st payment, how you will make it, and for how long.
- Address your letter to an actual person.
- If the payment offer is accepted be sure to obtain a confirmation of the agreement in writing.
Creating a medical debt relief plan can be difficult. If you are interested in receiving help from one of our financial advocates (English and Spanish speaking), please fill out our Get Help Form or call 817-921-0653. We look forward to speaking with you!
-Written by Tamika Chambers, Financial Advocate
