Medical debt is the leading cause of bankruptcy in the U.S., with over 40% of Americans owing money for healthcare expenses. Even with insurance, surprise bills, high deductibles, and out-of-network charges can derail your finances. Here’s how to protect yourself:
1. Review Bills for Errors
Up to 80% of medical bills contain mistakes. Always request itemized statements and dispute incorrect charges. Services like Patient Advocate Foundation can help negotiate costs.
2. Negotiate Before Paying
Hospitals often reduce bills if you ask. Offer to pay a lump sum (30-50% of the total) for immediate settlement, or request an interest-free payment plan.
3. Know Your Insurance Rights
- No Surprises Act (2022): Bans surprise out-of-network bills for emergencies.
- Appeal Denied Claims: 50% of appeals succeed when challenged.
4. Use Financial Assistance Programs
Nonprofits (like Dollar For) help eliminate bills based on income. Many hospitals also offer charity care—apply even if you’re insured.
5. Prioritize & Protect Credit
If you must delay payment, prioritize essentials like rent and food. Medical debt under $500 no longer affects credit scores (as of 2023).