Medical debt remains one of the highest debt burdens among U.S. households, with 25 percent of Americans struggling with it, according to new data from LendingTree.
Americans dealing with medical debt face a steep challenge, with cost burdens averaging $7,700 right now. The issue is so toxic that 55 percent of U.S. adults with medical debt say they can’t afford further medical care, with 32 percent saying their health condition had “worsened,” Lending Tree noted. Emergency care, hospital stays, and diagnostic tests are the primary reasons why so many health care consumers are underwater on their medical bills.
“The US population carries far more medical debt than in other countries,” Adam Nager, founder at Quest National Services, a medical billing company, told NTD News. “The high costs from clinical, to insurance premiums, to administrative processes require health care providers to carry forward these expenses.”
A big part of the cost problem is that too many Americans receive treatment that may not be 100 percent medically necessary, but is pushed through for a variety of factors. “The cost of denials is rising year over year as the insurance companies increase their requirements for medical records and to prove medical necessity, combined with labor costs rising,” Nager said.
You Can Cut Medical Debt and Here’s How
Americans wrestling with soaring medical debt do have viable options to curb those bills, health care experts say. These tips are at the top of the list.
Negotiate a lower bill
Health care consumers may not know it, but they can barter with medical service providers and wind up with a lower bill.
According to LendingTree, 60 percent of people with medical debt say they’ve negotiated their bills, and 90 percent have reduced their debt.
Doing so isn’t a heavy lift, either.
“See if there's an opportunity for a discount based on your income, job status, or potential discounts if you were to pay the balance in one payment,” Nager advised. “Health care organizations many times have financial relief funds and policies that aren't always public. Asking for support can often lead to a reduced or eliminated balance.”
Get a cost estimate before any procedure or service
Many Americans aren't aware of the potential health care debt before it occurs.
For example. Nager points to a health care consumer who goes to a specialist because they were referred over by another provider or friend.
“They see the specialist, they end up scheduling surgery, and they only then realize that the provider is out-of-network,” he said. “Not having a cost estimate prior to having any procedure or surgery is another huge problem that impacts American health care debt.”
Work toward a lower monthly debt number
A big stop for any medical debt should be a hospital's or clinic’s financial aid or charity care office.
“Most hospitals have a department dedicated to figuring out ways to get you coverage, such as retroactive Medicaid coverage, but you need to talk to them early, as there are deadlines,” Jay Zigmont, founder of the registered advisory firm Childfree Trust, told NTD.
When you speak with the financial aid office, ask to be placed on a payment plan.
“It may sound ridiculous, but I worked with someone who had a six-figure medical bill, and the hospital took a $25/month payment,” Zigmont noted. “Sure, they will be paying $25/month for the rest of their life, but it got the hospital off their back.”
Change Your Health Care Strategy
While you’re chopping down your medical debt, make sure to plan ahead so it never happens again.
“That means getting on good health care coverage and not taking the chance again,” Zigmont said. “The problem is that health care insurance is expensive, and when you are fighting medical bills, it may seem impossible. Get insurance first, then work out the medical debt.”
The views and opinions expressed are those of the interviewees. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.