The most common debt that debtors suffer from is medical debt. If you are someone who is struggling with medical issues, there may be ways in which you can avoid medical debt to avoid bankruptcy.
Avoid Cost Sharing
One of the primary reasons for medical debt is cost sharing. This is the phenomenon where debtors are expected to pay for a portion of the medical costs that they face. Cost sharing has reached a level that is greater than most households have in savings. If you can find an insurance provider that does not require cost sharing, you will be less likely to pay out-of-pocket.
Make Sure Your Insurer Pays
Even if your insurance provider pays for all of your medical expenses, it is your responsibility to make sure that the insurer pays all of your expenses. If an insurer fails to do so for whatever reason, you may have the bill sent to you. A common situation is when the hospital orders tests that your insurer believes are not necessary. Therefore, if you would like to reduce the risk of medical debt, make sure that your insurer will actually cover a test and ask whether a test is truly necessary. Also, check the bill that is sent to your insurer to make sure there are no mistakes. Medical coders can sometimes make mistakes and bill your insurer for a treatment that was never provided.
Use A Health Savings Account
Health savings accounts are an additional option for healthcare in addition to buying health insurance. These programs take money out of your paycheck before taxes and deposit it into a savings account. Then, if you experience a medical emergency, the health savings account can be used to cover expenses that aren't covered by your health insurance provider.
Negotiate With Your Provider
Call your provider to ask if they will negotiate with you. Sometimes, healthcare providers will bill insurance companies for more than the insurance provider believes that the service should cost. The insurance provider offers to provide a smaller amount. Sometimes, the healthcare provider will be willing to accept the smaller amount. In hardship cases, your healthcare provider may be willing to reduce the portion that you would owe if they will not simply accept what the insurance provider pays.
Even when you reduce your medical debt, you may still find yourself with a leftover bill that you must pay with a medical credit card or a payment plan. You may need assistance from a debt relief expert (such as Curtis A. Anderson, Attorney At Law) who can guide you through your legal options.