Although paying off any debt can potentially be financially burdensome, medical debt is often uniquely challenging to pay off because it’s typically unexpected. Few people plan to sustain unanticipated injuries or develop illnesses requiring costly treatment.

You may feel overwhelmed if you’re facing medical debt. While this is understandable, it’s important to know that you have options in these circumstances. The following overview will describe what you may do to tackle this worrisome issue.

How Common is Medical Debt in the United States?

You’re not alone if you have medical debt. According to an NPR report, in the United States, 58% of debt in collections consists of medical debt, and approximately 100 million Americans currently have medical debt of some kind. Again, this may be due to the fact that medical debt is often an unexpected form of debt, leaving debtors without a plan to pay their costly medical bills.

How Does Medical Debt Impact Your Credit?

A healthcare provider may send your debt to a collections agency if you fail to pay your medical bills in a timely manner. Per the Consumer Financial Protection Bureau, starting in 2015, the major credit reporting agencies will no longer include medical collections on a consumer credit report until it is 180 days past due.

Starting in July 2022, the credit reporting agencies decided to extend that timeframe to one year. They also agreed that medical debt will not remain on a credit report once it has been paid off. Thus, even if medical debt is currently harming your credit, unlike other forms of debt, it may not necessarily stay on your report for seven years.

How to Handle Medical Debt

The best way to manage your medical debt can vary depending on such factors as how much you currently owe, how old the debt is, whether a healthcare provider has already sent it to collections, etc. However, general options you may consider include the following:

  • Review your bills: It’s possible you may owe less than a healthcare provider or debt collector is seeking. Always review your medical bills thoroughly to look for errors. A debt defense attorney may assist you with this task if a debt collector has filed a lawsuit due to non-payment.
  • Contact your insurance company: There are various reasons a person’s medical debt may be higher than they anticipated it would be after receiving medical treatment. Sometimes, a person’s debt is high because their insurance denied a claim or offered less coverage than expected. If this has happened to you, review your insurance plan and contact the company to discuss the matter in greater detail.
  • Contact the healthcare provider: Even if you believe a medical bill is technically accurate, you may not have to pay the full amount. A healthcare provider may agree to charge you a lower amount if you can demonstrate an inability to pay. Or, they may allow you to enter into a reasonable payment plan. Some medical facilities also offer financial assistance to those in need.
  • Take out a loan: Taking out a loan is not an option you should necessarily jump at before thinking hard about the long-term financial ramifications. That said, if you have significant medical debt and/or medical debt from multiple sources, by taking out  a personal loan to pay all your debt at once, you could essentially consolidate it, leaving you with one monthly payment. You may find paying off a single loan is easier than attempting to manage your medical debt in its current form.
  • Seek legal assistance: A debt defense attorney can provide you with expert representation if you are facing legal action due to non-payment of medical debt. They will handle all correspondence with debt collectors and other such parties, potentially minimizing any stress you might otherwise face in these circumstances.

These are just a few common options. Be aware, there is no universal “right” way to handle medical debt. You must evaluate the specific details of your situation to determine the best course of action.

You Have Options When Facing Medical Debt

Many can relate to the experience of struggling to pay medical bills. If you’re facing medical debt, understand that there is a way out. By taking action and coordinating with professionals if necessary, you can ensure troublesome medical debt doesn’t follow you for years.

Debt Legal Defense is a San Antonio, Texas debt defense firm offering representation to clients facing legal action because of medical debt and similar debt-related circumstances.