So you went to the ER or underwent an expensive medical procedure.
Your health is your most valuable asset.
Yet theres something so frustrating about going into debt over it.
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You didnt decide to splurge on a hospital stay or a costly battery of testsjust because.
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But there is hope.
That means that unless your medical debt becomes delinquent, it will not affect your credit score.
Thats when the credit bureaus will be notified.
If the collections account is reported to the bureaus, expect your credit score to plummet.
The good news is, FICO 9 scoring model weighs medical debt in collections less heavily than past models.
The bad news: Most creditors are still using FICO 8.
You could also be sued for what you owe.
The statute of limitations for unpaid medical bills varies by state.
If you have health insurance, ask your insurer for an explanation of benefits (EOB).
Be sure to document every conversation.
ensure your bill and explanation of benefits match up with what your policy says it covers.
If you think a service should have been covered under your health plan, call your insurance company.
But sometimes, claims are denied for more complicated reasons.
For example, your insurance company may say a treatment is experimental or not medically necessary.
In these cases, you have the right to appeal your insurance companys decision.
Just be sure to ask your insurance company about any deadlines.
Call the hospital billing department or your doctors office and tell them about your financial situation.
Be ready to provide documentation verifying your status.
Regardless of your tactic, dont expect to negotiate a major discount with a single phone call.
Expect to hear no a lot.
Keep asking for the supervisor of the person youre speaking to and explaining your situation.
If you do agree on a reduced amount, be sure to get it in writing.
Hospitals often have financial assistance and charity programs available for people who cant afford to pay.
The good news is, this option is often interest-free.
TheAlliance of Claims Assistance ProfessionalsandMedical Billing Advocates of Americaare two good resources for finding an advocate.
Unlike your student loan or tax debt, medical debt can be discharged in bankruptcy.
Bankruptcy will kill your credit score, so be sure youve considered all your options before filing.
Medical Debt Relief: 4 Mistakes to Avoid
Being proactive is key to getting medical debt relief.
That said, some solutions sound good but are either unreliable or could make your financial situation even shakier.
Here are four things to avoid if possible.
That means youll save money on interest by negotiating a payment plan directly with the hospital or doctors office.
You wont increase your credit-utilization ratio, which you want to keep low to have a healthy FICO score.
But what makes medical credit cards really scary is that interest-free period is actually deferred interest.
But remember: Medical debt usually isnt accruing interest.
So with medical debt consolidation, youre likely to pay more in the long term.
Plus, when you withdraw from retirement savings, youre borrowing against your future.
Ask upfront about projected costs, and then comparison shop.
Also ask your doctor about cheaper generic alternatives to pricy name-brand drugs.
When possible, avoid the ER and get treatment from your primary care doctor.
If you cant afford to go to the doctor, try thesealternative ways to get treatment.
Robin Hartill is a senior editor at The Penny Hoarder.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
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