Nearly one in 12 American adults has medical debt, with 3 million of these individuals owing more than $10,000.1 Navigating medical bills can be challenging, but there are ways to minimize costs along the way. Understanding medical bills and knowing your rights can help equip you to take control of these unplanned expenses.
Lowering medical bills begins before you ever receive care. If you have a health plan, use in-network providers for the lowest rates. Look at your plan details to find what is considered preventive care, which is often covered at no additional cost. If eligible, pay for qualified medical expenses using pre-tax dollars from a Health Savings Account (HSA). Shop around for health care services because costs can vary across providers and facilities.
If you don’t have a health plan, ask your provider for a discount to pay cash. Many offer discounts because a cash payment reduces administrative costs and eliminates delays in health plan payments.
Find more ways to reduce health care costs.
Once you receive a medical bill, review it closely for accuracy. Unfortunately, billing errors are not uncommon. Ask for explanations of terminology, abbreviations or codes you don’t understand.
Look for the following to detect billing errors:
If you find an error, promptly report the discrepancy to the health care provider and notify your health plan administrator. If you need additional help to resolve the issue, a Consumer Assistance Program2 in your state may be able to help. You may also consider reaching out to a medical billing advocate for assistance.
A car accident or health crisis can create a financial burden of medical debt. Make every effort to negotiate medical bills. Start with the health care provider or facility and explain your situation. They may agree to settle for a lower amount or allow you to set up a medical bill payment plan.
If your medical debt is turned over to a collection agency, you may be able to negotiate a payoff amount lower than the total bill. For example, ask if they are willing to write off 25% of the bill if you pay the remainder of the balance now.
If you agree to a payment settlement, whether with a medical facility or collection agency, get the terms in writing before sending payment.
Sometimes, the IRS may allow you to “deduct the medical and dental expenses you paid for yourself, your spouse, and your dependents during the taxable year to the extent these expenses exceed 7.5% of your adjusted gross income for the year.”3 This applies to qualified, unreimbursed medical care expenses and excludes expenses paid for from an HSA or Flexible Spending Account (FSA) because those funds are tax-advantaged.4
Search for financial assistance programs5, grants or charitable organizations that may be able to provide some relief. Also, the Affordable Care Act (ACA) requires nonprofit hospitals to establish a Financial Assistance Policy (FAP), which may provide free or discounted services for those who meet the criteria.6
Our vision is that every servant of Christ finishes well, and that includes providing resources and tools for your well-being. For more information about faith-based health plans that align with your biblical values, contact us at Insurance@GuideStone.org or 1-844-INS-GUIDE (1-844-467-4843), Monday through Friday, from 7 a.m. to 6 p.m. CT.
GuideStone welcomes the opportunity to share this general information. However, this article is not intended to be relied upon as legal advice, tax advice, or medical advice, diagnosis or treatment.
1HealthSystemTracker.org/brief/the-burden-of-medical-debt-in-the-united-states
2CMS.gov/cciio/resources/consumer-assistance-grants
3IRS.gov/taxtopics/tc502
4Intuit.com/tax-tips/health-care/can-i-claim-medical-expenses-on-my-taxes/L1htkVqq9
5ConsumerFinance.gov/ask-cfpb/is-there-financial-help-for-my-medical-bills-en-2124
6IRS.gov/charities-non-profits/financial-assistance-policies-faps
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