Dealing with Medical Debt

Read time:  approximately 5 minutes

Does the thought of dealing with medical debt in your mail or inbox make you nauseous? 

 

It’s pretty much a fact of life that at some point everyone will experience some type of medical event, be it large or small.

Unfortunately, pretty quickly, the bills will follow.

Having a plan in place before medical bills are received can reduce the anxiety associated with dealing with medical debt.

 

In February I had surgery to remove my thyroid.

 

Predictably, the bills followed. 

As I sat down to begin the agonizing process of organizing, reviewing and paying bills, the first bill that I looked at was 160.84.

While the amount itself wasn’t horrible, what caught my attention was the little line that stated:  Insurance covered: 0.00 / not covered.  Wait, what?  Why?

A significant amount of time later, I had the answer.  There had been an error.  My share was actually $7.38.  Thankfully, I had taken the time to investigate.

 

After spending quite a few hours sorting and sifting through medical bills, I have derived a “process”, a checklist, if you will, for dealing with each and every medical bill that arrives. 

 

While, hopefully, you never have to incur significant medical bills, this process will work for the smallest of office visits. 

 

Dealing with medical debt efficiently actually begins while you are sitting in the office or hospital.

 

Everyone knows that hindsight is 20/20 and, in my case, that is absolutely true.  While we can never go back, perhaps my lack of knowledge will benefit you.

 While documenting won’t be a priority in the midst of a crisis, as soon as possible, document the dates of service, where you were seen, by what doctor and services received. 

It is surprising how easy it is to forget all the little details.

While one would like to think that following a medical situation there would simply be one composite bill with which to deal, that is probably not going to be the case.

In my case, there are three categories of bills:  physician services, lab services, and hospital services.  And each category is billed separately. 

Knowing if you actually received services on a certain date from a certain provider at a certain facility is a great starting point in ensuring accuracy.

 

When the medical bills arrive

 

Don’t ignore the bills

 

The temptation to ignore medical bills is a strong one.  After all, finances are already tight and adding even one more payment seems impossible.

However, like any debt, it will be easier to deal with it sooner rather than later.  Even if you can’t afford to pay the bill, open it up and take steps to get it ready for payment

 

Review and print or save the EOB

 

First, what is an EOB? 

An EOB, in my case is an explanation of benefits.  Not every insurance company uses that terminology.  Whatever the terminology, pull the statement provided by the insurance company and use it to compare to the bill. 

 

Does the EOB match the bill?

 

The information provided on the EOB should match the statement from the provider.  The EOB should also include any discounts that the insurance company has negotiated, what has been paid on behalf of the patient and the patient responsibility.

Confirm that the service provider is  only billing for the amount that is considered the patient responsibility.

If there is a denial, question why (that information too should be included on the EOB).  Don’t be afraid to pick up the phone and call the insurance company.

Medical coding is hugely complex.  One medical code, submitted incorrectly, can result in the denial of the claim. (which was what happened to me).

Once you have compared the bill to the EOB, you are ready to move on.

 

Before you pay a medical bill

 

Ask about discounts

 

Before you write a check or go online to pay, take the time to call the billing office and ask if there are any available discounts. 

In the case of our local hospital, if you are able to pay your portion in full within the first 30 days of billing, there is a significant discount available.

While it may not be possible to do that for large bills, it may be possible to reduce the overall burden by knocking some of the small bills out by utilizing discounts. 

 

If you can’t pay your medical bills in full

 

Even if you can’t pay your medical bills in full, it is critical that you at least attempt to set up a payment plan.  Most providers will work with you if you make an honest effort to pay your bill.  (Of course, there are always going to be exceptions.)

If you do set up a payment plan and there is a month where you can’t pay, make a phone call and explain the situation.

The goal is not only to pay the bill but keep it from going to collections. 

 

If you can’t afford to set up a payment plan

 

Again, communication is key.  Call the billing office and ask what programs are available to assist with medical bills.  If there is a program available, make sure that you jump through the necessary hoops to get the help that you need.

 

After the medical bill has been paid

 

On the front of the statement, document the date you paid, how much you paid and how it was paid (check, money order, credit card or online.) If you received a confirmation number, make sure to record the confirmation number right on the bill.

 

File the bill and the copy of the EOB

 

Whether in an old fashioned manila file folder or scanned into your computer, keep a copy of the bill on which you have documented everything and a copy of the accompanying EOB.

Wherever you file it, make sure that you can find it. 

Way before work at home became a thing, I invested in a printer, scanner combo.  Since I lose paper, I have chosen to scan in and retain my medical bills. 

 

Document the statements

 

There is no getting around this part, it stinks.  However, on every single statement, document what has happened or is happening with the bill. 

If you called the insurance company and spoke with someone, document the date, time, person to whom you spoke and the outcome of the conversation. 

If it hasn’t been resolved, put it where you will not forget to follow up.

 

Medical bills may be a fact of life but a little planning and organization will go a long way towards making medical debt manageable.

 

Having a solid plan in place with which to deal with medical debt can make the difference between getting the bill paid and ending up in collections.  

 

Disclaimer:  I am not a medical or financial professional and this information should not be considered professional advice.  Please seek professional financial advice if you have medical debt that you are unable to resolve.     

 

 

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