When medical bills pile up, it can seem like a neverending payment process. Even if you get on a good payment plan with low interest rates, it could be many years before the end of the plan. How long are you stuck paying medical bills, sucking your bank account dry?
Consider Filing For Medicaid For Bills Up To Six Months Old
Low-income qualifications are different from state to state, but if you qualify in your state, Medicaid may pay for all of the bills you’ve already received, up to three to six months after the date of service. Submit a Medicaid application as soon as possible.
Even if you don’t qualify, your child(ren) might. Look into applying to your state’s medical coverage plan for children.
What To Do If You’re Told You Don’t Qualify
The Lump Sum Payment
If you don’t qualify for Medicaid, and you have a little money, then one option is to pay a lump sum. You can talk to the billing department and say something like “If I pay 30% of this bill right now, will you write off the rest?”
It may sound surprising, but a lot of medical offices will agree. The fact is that so many people are unable to pay their medical bills that those billing departments know that some money is better than no money. If they don’t make a deal with you for that 30%, they may never see any of it. So they’re willing to bargain.
The Down Payment Plan
Another option, if you have the resources, is to offer to make a large down payment on the bill–say, maybe 25%–if they’ll agree to put the rest on an interest-free payment plan and never send it to debt collectors. They’d rather not send the bill to debt collections, because those agencies buy the debt for pennies on the dollar, and you don’t want it affecting your credit. So it’s a win-win.
Get the CPT Codes and Offer the Medicare Rate
As we’ve discussed before, the very best way to pay a medical bill–any medical bill–is to have the medical office send you a copy of the bill with the CPT billing codes. These are the uniform codes that all medical practices and health insurers use to make sure a bill is accurate.
And once you get the CPT codes from the billing department, you can do a Google search of the codes to see what Medicare will pay for each. With that knowledge in your back pocket, you can approach your medical provider and tell them exactly how much you’re willing to spend. You’ve done the research. They can’t argue.
Medicare prices may be tens of thousands of dollars less than providers’ retail (sticker) prices but, as they say, a little bit of something is better than all of nothing. Paying Medicare rates for medical care may mean the difference between being able to make regular payments versus having to claim bankruptcy.
Also, whether or not you get an agreement for a lower bill, always ask for an interest-free payment plan that fits your budget. Whatever payment agreement you get, make sure it’s put in writing and sent to you for your records.