Medical Bills Got You Down? Consider This Strategy Now

Sarah Brumley

Sarah Brumley

There’s nothing worse than recovering from a medical event only to have huge medical bills show up and not know how to pay for them. Not to worry – today I’m walking you through five steps to help you figure out what to do next – no panic required. Sound like something you need? Well then, let’s get started.

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Grab Your Financial Fix Up Planner Today

Here’s the deal: in order to achieve your long-term financial goals, you have to have a budget that works for you and your family. That means, getting super clear on your income, expenses, and total debt payoff amounts, so you can make any necessary changes and begin to see progress. That’s exactly what the Financial Fix Up Planner is designed to help you do. With step-by-step instructions to set up your budget, monthly challenges to keep you on your toes, menu planning resources, and space to reflect on your goals, you’ll have everything you need to pursue your dream of financial freedom. Sound like something you need? You can grab your copy today at lemonblessings.com/planner and take back control of your family finances. Once again that’s lemonblessings.com/planner for your copy of the Financial Fix Up Planner.

So You Received a Huge Medical Bill, Now What?

Well hey there and welcome back to another episode of the Financial Fix Up Podcast. I’m your host, Sarah Brumley, and today I want to take some time to chat about those pesky medical bills. You know, the ones that you thought were long gone and didn’t apply to you because no one told you that you’d be receiving one. And yet here you are sitting with a bill in front of you and you aren’t sure what to do now.

In fact, you might be freaking out a little on the inside OR the outside, possibly. But today I’m going to walk us through a few next steps to take to so that the freak out isn’t necessary and so that you can get back to life, pursuing your financial dreams, and that feeling of calm again.

And before we jump into those steps, I have to say that I know this scenario like the back of my hand. When Justin and I first got married – 18 years ago as of this recording – he had just completed treatment for cancer, so we were up to our ears in medical bills. Top that will having very little income at the time and insurance that was – mostly terrible – we really struggled to stay afloat and every new bill that hit the pile felt like a death sentence for our financial dreams.

And while we were eventually able to get out from under THAT pile, we’ve since dealt with a medical procedure of mine, another round of cancer treatment for him, and then a significant and ongoing mental health crisis for our daughter. And all of those events have brought in medical bills that at times, we had no idea how we would pay.

One of the more recent bills came in at over $50,000 – so you can understand that we were freaking out a bit – on the inside AND outside, too.

But the truth is that we have learned a lot throughout each of these situations and my hope is that by sharing that information with you today, that you’ll find encouragement and even a strategy as you navigate your own medical debt crisis.

Sound like a plan? Well then, let’s jump in.

Step #1: Stay Calm

The first step in this process is to stay calm. Easier said than done, right?

Trust me, I know how easy it is to panic in these situations. To get caught off guard by an unexpected bill and think the worst of everything.

This, too, shall pass. Even when it seems like it might take down all of your financial hopes and dreams – years from now this will just be a little blip on the road to success. And you will have success, I’m sure of it.

So, don’t panic. We’re going to get you back on track in no time.

Step #2: Verify Insurance Was Billed

The second step to take is to look over that bill carefully and make sure that your insurance was billed. More often than not, large medical bills are due to the fact that insurance wasn’t billed OR wasn’t billed correctly.

If you know the amount should have been covered, then reach out first to your insurance company and ask what was missing. And, this might seem like an overwhelming thing, but seriously it is the best way to get to the bottom of what may or may not have happened with your bill. Look at the back of your insurance card, call the customer service number, and just be prepared to give them your insurance information – group number and such – and the date of service, amount billed, and whatever other questions they might need answers to. If your doctor or medical provider is in network with your insurance company, then they have a contractual obligation to correctly submit documentation to the insurance company for that coverage and payment.

A lot of times the insurance company will work directly with your medical provider to get the situation taken care of, but if that’s not the case, then it’s time to contact your doctor, surgeon, or whoever the bill is from and ask them to submit or resubmit the claim to insurance. Give them any and all information you received from your insurance company as to how to proceed.

If the claim for coverage was denied, it might be time to consider an appeal. This is often something that your doctor or medical provider can take care of for you, but when in doubt, ask the insurance company what they need to speed up the process.

So, step 2 is to make sure that insurance was billed or set up arrangements for it to be billed properly.

Step #3: Request Financial Assistance

Step three – and this step is really only necessary if your insurance was billed properly and you still owe the bill – but if that’s the case, then you’ll want to request financial assistance. A lot of medical facilities offer payment reduction or financial assistance based on your income and family size. It might take a little time to fill out and submit the correct forms and documentation, but you might find out that you can have the entire amount waived or the amount decreased significantly.

A quick phone call to your medical provider should help you determine whether this is an option for you.

Step #4: Set Up a Payment Plan

If, after requesting financial assistance, you still owe more than you can pay outright at this point, then the next step is to set up a payment plan. Medical payment plans are typically, but not always, zero-interest, so ask to see what the minimum is that you can pay to keep the account from defaulting or going to collections. I like to ask, “Would you take $25?” and see how that sits with them. They may say yes, or it might have to be more based on how much you owe, so do what you can to get it to a reasonable amount that works for you. A lot of providers will ask for income verification before committing to a payment plan, so make sure to provide whatever documentation they request.

Once you have set up the payment plan, the medical provider will not send you to collections. They are going to take your payment in good faith that you will pay off the amount owed to them. So, that’s exactly why you need to get this step done ASAP. DO NOT – to the best of your ability, let that account go to collections, okay? At that point you’ll be on the hook for the full amount PLUS the percent that the collection agency adds as well, anywhere from 30 to 50% or more. So, if you have a $100 medical bill and it goes to collections, you will pay anywhere from $130 to $150 in order to get out from under it. We don’t want that, so set up that payment plan to get you on the right track.

Step #5: Make the Payments

If you were able to set up a payment plan – great! Plug that into your monthly budget and make each payment on time. Remember, that while the provider is happy to keep your account out of collection while you are making those payments, they might not be too forgiving if you miss one. So don’t miss those payments.

If the monthly payment plan isn’t an option or the monthly bill is still too high, you may have to consider some additional options to get out from under that bill:

  • Revamping the budget – link to a podcast episode all about what to do if your income doesn’t cover your bills
  • Medical forbearance on student loans
  • A personal or family loan – to give you a little more time to get out from under the amount
  • Using emergency savings

Last and finally, you could choose to use your credit cards, however, I want to remind you again that debt is debt. So, while you might be tempted to put that medical bill on credit, the long-term effects might end up being worse. So tread lightly when it comes to consider this as an option.

Once again, you want to make sure that medical debt doesn’t land in collections, so do what you can to make adjustments to your budget or your financial situation to take care of it ASAP.

How Will You Pay That Huge Medical Bill?

So, there you have it. My five steps for dealing with unexpected medical bills.

  1. Stay Calm
  2. Verify Insurance was Billed
  3. Request Financial Assistance
  4. Set Up a Payment Plan
  5. Make the Payments

And that might sound easier said than done, but the sooner you take action and work your way through these steps, the sooner you’ll be able to turn your energy and attention back to what matters most to you.

And if you need help setting up or revamping your monthly budget, then make sure to grab a copy of the Financial Fix Up Planner. It offers everything you need to set up your ideal family budget and stay on track all year long. You can get your copy at lemonblessings.com/planner.

Whatever you decide, just know that I’m cheering you on! You’ve got this! Have an amazing day and I’ll chat with you again next time!

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