Medical debt can devastate our financial standing, making it difficult for us to make decisions and causing us to go into debt. There have been several medical bills our family has had to deal with recently from different providers and organizations.
Consumers are frustrated by the convoluted and archaic system. At the same time, strategies are only as effective as how we implement them. Below are some examples from our personal experience that demonstrate some common pitfalls.
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Check Your Mail For Medical Bills
Medical billing still occurs on paper in a digital age when almost all financial transactions are electronic. While you can pay your utility bills online, tap your phone at the grocery store, and Venmo, your plumber, medical bills still arrive by mail. Even hospitals with patient portals don’t all integrate billing.
Make Sure You Examine All Medical Bills
The task of reading medical bills and verifying diagnostic codes is hardly enjoyable. You could wind up paying for services you didn’t receive if you don’t. Be sure to review any healthcare bills before paying them. You can end up paying for services you didn’t receive when a medical office indicates the wrong billing code.
Ensure That All Insurance Payments Are Current
The insurance company usually pays the provider three to six months after receiving care. Meanwhile, the provider may bill patients differently. We owe the doctor a fraction of the bill as soon as the insurance pays.
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What Is My Real Debt?
The insurer sends you an Explanation of Benefits after submitting a claim. It shows what the provider charges, what the insurance pays, how much is written off by contractual discounts, and how much is deductible co-pay or co-insurance. It is essential to know how much you must pay the provider on the EOB, called “patient responsibility. Check every EOB for cost share.
Do Not Rely On Credit Cards To Pay Your Medical Debts
Using a credit card for medical expenses is generally a mistake unless you know you can repay it in full before interest accrues. In the meantime, you would delay the inevitable reckoning and rack up additional debt.