Once First, don’t panic. Think of a big medical bill as the universe giving you a big, fat joke. These bills are horrible, but you will probably not have to pay that. There are sooo many reasons it could be wrong and lots of work to do before you know what you really owe. Remember, there is no such thing as debtor’s prison in America (except for court fees but that is another story) and everything leaves your credit report in seven years.
(If you haven’t been in this situation yet, you need to know which of your local hospitals is least likely to sue their patients and which ones are most willing to negotiate in advance so you can make sure to go to the right hospital when you need one.)
There is an amazing podcast from NPR which has most of what you should know…read these first and then listen to the podcast for the rest of the details.
- If you have insurance, have they processed it yet? If not, call them and give them the insurance information and then wait a month for a new bill. If you don’t have insurance, call them and ask about their financial assistance policy to see if you qualify. If they are claiming a tax exemption for charity care, they have to provide this information. (Note that financial assistance and charity care are not simply payment plans, some or all of the bill should be relieved if you qualify under their written policy)
- Do the dates/procedures match the EOB from the insurance (if applicable)? If not, contact the insurance company.
- Is it a “surprise medical bill‘? That means you didn’t know you had services from an out-of-network doctor. This usually happens in the hospital or ER. If so, find out if your state allows this. These bills are illegal in NY and there are federally set limits for emergencies.
- Request a complete itemized bill as soon as you can. They will probably fight you or send you a fake one (I got one of these once). The real breakdown should have actual procedure and charge codes listed and prices for each. Compare this to the prices in the Healthcare Blue Book for reference.
- DO NOT PAY IT. Not right away, unless it is correct and easy to afford (so why are you reading this). Otherwise, wait until you go everything figured out first and never put it on your credit card. Once you pay it, you cannot negotiate anymore. It won’t go on your credit report for at least six months, so don’t let them scare you into paying too soon.
Is the hospital already calling you? Good. That means you don’t have to call them. Saves you time!
Is a bill collector calling you? Check out these letter templates and resources here: https://www.consumerfinance.gov/consumer-tools/debt-collection/