6 Ways to Pay Off Medical Debt Fast

Medical debt can be incredibly stressful.

First of all, you’re usually in it because you or a loved one had or has a health issue, which is scary in and of itself.

But then you layer on the potentially thousands of dollars you now owe in medical bills, and it’s understandably anxiety-inducing.

When an emergency arises, sometimes you have no choice but to go into the red financially. In fact, people in the United States owe at least $220 billion in medical debt.

The good news is that there are several differences between medical debt and, say, credit card debt or student loans or car loans. You may have options that are more readily available to you than you may have with other forms of debt.

Today, I'm sharing 6 ways you can pay off your medical debt faster so that you can clear your debt sooner and focus on what really matters: living your healthiest, most fulfilling life.

How to pay off medical debt

1) Know your rights

There are certain laws in place to help protect people from unfair medical bills. One of the most influential is the No Surprises Act of 2022.

Essentially, the goal of this legislation is to prevent or reduce bills that you weren’t expecting from an out-of-network provider. They often arise when you didn’t choose the doctor or you didn’t know they weren’t in your network.

For instance, let’s say your spouse had a medical emergency and you had to call an ambulance. You don’t have control over which hospital the ambulance takes you to or who gives your spouse anesthesia. You don’t have a choice in a lot of these areas and they may not be in your network.

The No Surprises Act states that your insurance has to pay for emergency services as though they were in-network.

Also, if you’re paying for services yourself, you have the right to a good-faith cost estimate from the provider. If a provider bills you $400 or more above that estimate, you can challenge the bill.

If you’re using insurance, your insurer can tell you what’s covered and estimate your out-of-pocket costs. If your insurer denies a claim because it says certain services aren’t covered, you can dispute that decision.

That’s just a very quick overview of a couple aspects of the No Surprises Act. My point is that you have certain legal rights and protections. Do some research and see if there’s anything that can be applied to your situation.

2) Review your bill for accuracy

Before you pay anything, ask your healthcare provider for an itemized bill. Check the bill for errors and discrepancies.

These can include billing mistakes, such as:

• double billing
• incorrect billing codes
• charges for services not rendered
• inaccurate insurance information
• coverage disputes

These mistakes are surprisingly common and can significantly inflate the cost of medical treatment.

Again, the No Surprises Act of 2022 prohibits some charges from providers you might not have realized were out-of-network. That means any unexpected out-of-network charges could be a red flag.

3) Negotiate your bill

The good news is that there’s typically more leniency when it comes to medical debt than other types of debt, so you have options.

You could see if your healthcare provider offers discounts for things like paying as a lump sum. They may be willing to negotiate discounted rates, set up payment plans, or explore financial assistance programs to help alleviate the financial burden of medical bills.

In fact, many hospitals offer bill relief programs that can lower your bill if you meet certain criteria for financial assistance. If you think that paying your bill may be a problem, ask about these options as soon as you can.

4) Request a payment plan

One positive of medical debt over credit card debt is that many medical providers, including physicians, dentists, and hospitals, can work out a no- or low-interest payment plan for your medical bills.

Payment plans can be tailored to fit your specific financial circumstances. Healthcare providers may be willing to adjust the monthly payment amount or extend the duration of the plan based on your ability to pay. This allows you to create a repayment schedule that works best for you.

Requesting a payment plan for medical debt can give you a practical and manageable way to pay your bills while minimizing the impact on your budget and credit score.

5) Hire a patient advocate

A patient advocate is a healthcare professional who can help you understand your bill and navigate the payment process.

These people are typically well-versed in healthcare billing practices, insurance policies, and patient rights and can explain some of the confusing terminology and technical aspects. They serve as intermediaries between patients and healthcare providers, ensuring that medical bills are fair and accurate.

Patient advocates will take on a lot of the things I’ve already mentioned, like reviewing medical bills for mistakes, identifying any inaccuracies, and working to rectify them.

By helping you navigate the payment process, patient advocates strive to ensure that patients receive the care they need without facing overwhelming financial strain.

6) See if you qualify for an income-driven hardship plan

If you have an income-driven student loan plan, then this is basically the same thing, but for medical debt.

Essentially, an income-driven hardship plan can break up the total amount you owe into more manageable, regular payments or even forgive the debt altogether.

Talk with your provider to see if they offer this kind of plan; all nonprofit hospitals offer some form of charity care. Keep in mind that you may have to apply for Medicaid before being eligible.

Want to get rid of financial stress?

I hope that this helps you alleviate some of the financial stress you may have due to medical debt and gives you some ideas of what to do next.

And speaking of financial stress, if you want to learn our 3-step system for managing your money without stress and how to grow your money so you can take care of yourself now and in the future, be sure to check out our free masterclass!