-convenience store kid video-
When you pay a medical bill using insurance and have a large deductible, you obviously have to cover the difference. The problem is that if a bill is obviously inflated over normal pricing, you can’t settle directly with your hospital. Because you used insurance, settling is actually illegal. So direct debt settlement is only available for those who pay cash. Incredibly, those who pay cash and are below the poverty line are candidates to have their medical bill totally forgiven. This is the case of the young man in the video who got a stomach virus. Since his annual income was so low, he went through a process which included filling out forms and submitting his W-2. Instead of having outrageous debt hanging over his head for decades, he is cleared to work and is now rebuilding his life.
It’s not common knowledge but all American hospitals have designated debt forgiveness quotas that they have to meet through government mandate. How ironic this is considering we are now in the era of the Affordable Healthcare Act which is actually supposed to be affordable. If you do have a well paying job and become hospitalized with an inflated bill there is still hope. Go onto the internet and find a local “billing advocate”. This is someone who is trained to find excessive and unnecessary charges on hospital bills. Seasoned billing advocates will tell you that they find over charges on ALMOST ALL BILLS. They know from experience that being sloppy on billing is extremely profitable for hospitals. Under scrutiny, it would not be an unusual scenario for a bill to be widdled down from $40,000 to $10,000. So whether you use insurance or not, your first logical move would be to contact a billing advocate to make sure you are not being swindled.
After eliminating the excessive charges, it is possible for cash payers to talk to the hospital and have him/her knock the bill down some more. If you show gratitude for the medical procedure and humbly explain your dire financial situation situation, you could get a $10,000 bill down to $2,500. Granted settling like this would be difficult after having used a billing advocate to get your bill from $40,000 to $10,000. But a hospital may be willing to work with you if you show your budget and your monthly family spending plan. They would rather be paid something than nothing at all.
This two punch knock out method is important to internalize because insurance is out of reach for a lot of people. Also keep in mind that 52% of all collection accounts involve medical debt so there is a good chance you might experience it. You want to avoid having your FICO score drop by a solid 100 points because of an unexpected medical emergency. However, if your medical bill does end up in collections it’s consoling to know that it is not as derogatory as credit card debt. And whether or not you paid part of the bill by insurance, you can use a debt settlement company to settle the long and painful way. Should you choose to pay a medical bill without a debt settlement company, you will have 180 days before Experian, Equifax, and Transunion report it. This is due to new legislation which helps Americans tackle medical bills without destroying their credit.