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10 Ways to Crush Medical Debt Without Destroying Your Life

May 13, 2025 By Teri Monroe Leave a Comment

paying for medical debt — Image Source: 123rf.com

Medical debt can be crushing. In fact, 58.5% of respondents to a 2019 study published in the American Journal of Public Health said medical expenses contributed to their bankruptcy. Don’t let medical debt destroy your life. Here are 10 ways to reduce your debt and work on repayment without losing your sanity.

1. Review Your Bills

Did you know that medical bills often contain mistakes? Medical Billing Advocates of America has estimated that three-quarters of medical bills contain some type of error. It’s important to review your bills item by item and look for errors. You should use your bill as well as your explanation of benefits (EOB) from your health insurance provider, if you have insurance.

Sometimes you can be charged for the same service twice or be charged for something you didn’t receive. It’s important to be aware of the care you’re receiving. For example, in the hospital, try to keep track of medications you’re taking, tests you receive, and any procedures. Being your own advocate is essential to keeping track of your medical expenses. This way, you’ll be prepared if medical bills are incorrect.

2. Look Up Fair Pricing

Did you know that you can look up the Fair Market Value of medical services? Using the Healthcare Bluebook, you can research what services actually cost. This way, you can make sure that your bill is accurate and fair.

3. Dispute Surprise Billing

Did you know that surprise medical billing is heavily regulated and is illegal in some states? Sometimes this is called balance billing. If you receive a large bill from an out-of-network provider, your insurance may not cover it. You will then be billed for the balance. The No Surprises Act (NSA) took effect on January 1, 2022, and aims to protect patients from unexpected high costs when receiving certain medical services, particularly emergency care and care from out-of-network providers at in-network facilities.

4. Put It in Writing

If you dispute a bill or coverage with your provider or insurance, make sure to put it in writing. For example, if an insurance claim is denied, you can request that the claim be reviewed internally. If it is still denied, you are entitled to an external review as well. These requests should be made in writing, and you should keep a copy for yourself. Making sure that your insurance company pays for its share is critical in reducing what you owe. The same is true if you dispute a charge with your doctors or a hospital. Always create a paper trail so that you can refer to it later if the dispute goes unresolved.

5. Negotiate

Sometimes, if you can’t pay your medical bill, you can apply for a lower payment due to hardship. You may have to fill out paperwork to apply and disclose things like your income to qualify. However, this can significantly reduce what you owe and lower payments so that it’s within your means. Be aware that you’re more likely to get financial assistance before you miss payments, so it’s best to be proactive about this and not let your medical bills go into collections.

You may want to speak to a medical billing advocate to help you negotiate your bills and correct any errors. The AdvoConnection Directory and the Alliance of Claims Assistance Professionals can help you find a medical billing advocate, but you may need to pay a fee.

6. Ask for a Discount for Upfront Payment

If you can pay the bill upfront, ask if you can get a discount for doing so. This reduces administrative costs for your provider. So, they are usually willing to discount your bill. This is especially true if it’s a large bill because your provider wants to receive payment promptly.

7. Set Up a Payment Plan

If you can’t pay your bill in its entirety, many providers will let you set up a payment plan without interest. This is much better than paying off the debt on a credit card and paying unnecessary interest. Usually, payment plans can range from months to years, depending on your provider.

8. Find Support

Do you have a lot of unexpected medical expenses? You don’t have to drown in debt. Several charitable organizations help individuals pay for their medical debt. For example, the HealthWell Foundation helps those who are underinsured to pay copays, premiums, deductibles and out-of-pocket expenses.

9. Consolidate Debt

If you have a lot of different medical bills, it may make sense to consolidate the debt. This will give you one monthly payment. However, you may have to pay interest if you take out a personal loan, for example.

10. Prioritize Other Debt

Medical debt may not be as pressing as mortgage payments or credit card bills. Not paying these could make you lose your house or bring down your credit score. Some medical debt won’t hurt your credit. For example, Equifax, Experian and TransUnion recently announced they will stop noting medical debt in collections under $500. Furthermore, the Consumer Financial Protection Bureau (CFPB) finalized a rule in January 2025 that prohibits most medical debt from appearing on credit reports.

How has medical debt affected your financial health? Let us know your experience in the comments.

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New City, New Life? 9 Financial Struggles You’ll Face (And How to Survive Them)

April 1, 2025 By Teri Monroe Leave a Comment

Moving to a new city comes with excitement, but also unexpected expenses. From relocation costs to housing, taxes, and a higher cost of living, your budget may take a hit. So how can you stay financially stable during the transition? Here’s how to navigate the challenges and keep your finances in check.

1. High Moving Costs

Moving costs, especially if you are moving far can be a financial burden. If you are moving for work, ask your employer about a relocation package to help offset some of these costs. Otherwise, you may want to consider doing some of the moving yourself by renting a U-Haul truck or packing up your belongings yourself. This can help you save a good amount of money.

2. Housing Costs

Housing costs are usually one of the biggest financial stressors when you move. You may be stretched thin trying to provide money for rent including a security deposit. If you’re buying a home, your down payment and mortgage payments may also have drained your savings. If you’re feeling broke, make sure to adjust your spending habits until you can get back on track.

3. Increased Cost of Living

The things you once were able to comfortably afford may be more expensive in your new city. Groceries, gas, and eating out may all be more expensive. If this is the case, make sure you adjust your budget accordingly and consider bringing in additional income if you can’t find ways to make your budget work with an increased cost of living.

4. Lifestyle Creep

Is your new city more expensive than your last? You may find that lifestyle creep becomes a financial struggle for you. The things you once were able to afford may not be within budget anymore. You also may feel a strong fear of missing out on experiences in your new city. Try and balance how you spend your money and not let your new city blow your budget.

5. New Job Hunt

If you move without a job, you may face the financial struggle of job hunting. Hopefully, you’ll be able to use your emergency fund or savings to get you by while you look for a new job.

6. Transportation Costs

You may need to get around in a different way when you move. Maybe you’re used to walking or using public transit, but that isn’t an option in your new location. You may need to invest in a car if that is the only way to get from place to place.

7. Higher Taxes

If your new area has higher taxes, make sure that you budget appropriately. You may have to pay more in income tax, sales tax, or property tax in your new city.

8. Higher Utility Bills

Changes in weather in your new city may leave you with higher utility bills than you are used to. Especially when you are unsure how much your utilities may cost, it may come as a shock. To lower your bills use energy-efficient appliances, unplug devices, and compare utility providers.

9. Healthcare Costs

When moving to a new city, make sure that your new doctors are in-network. Don’t get caught going to doctors that are out-of-network, which will cost you more out-of-pocket. Especially if you are switching healthcare plans, your premiums may also increase in a new city. Be sure to check what your insurance coverage entails.

Are you moving to a new city? What unexpected costs have surprised you?

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State Disability Insurance vs. Private Disability Insurance: Which Is Right for You?

December 20, 2024 By Teri Monroe Leave a Comment

Did you know that according to The Social Security Administration, 1 in 4 workers will become disabled during their working years? If you sustain a disability, both state or federal disability insurance and private disability insurance are viable options to lessen your economic hardship. Navigating the intricacies of disability insurance can be quite challenging so we’ll give you an overview of your options to know which is best for you.

State Disability Insurance

State disability insurance is only available in select states including California, Hawaii, New Jersey, New York, and Rhode Island. These programs are for claimants who are totally disabled claimants on a short-term basis. Each state has different requirements to be eligible for their disability insurance programs. Some typical parameters for eligibility include the length of time you have worked for your employer, how long you’ve been disabled before you can apply, and what percentage of your salary will be paid out. If your state doesn’t offer insurance, you may qualify for federal Social Security Disability Insurance.

Social Security Disability Insurance

Social Security Disability Insurance (SSDI) is only available to those who have paid into it. This means that you have contributed through payroll deductions. SSDI is available for people with both short-term and long-term disabilities. According to The Patient Advocate Foundation, “To receive SSDI, your application must show that you can no longer work in your previous occupation, you cannot adjust to a new work environment, and your disability prevents you from being able to return to work for at least a year.” There are no time limits for how long you can receive benefits.

Private Insurance

Private insurance is paid for by the employee in the form of premiums, usually collected monthly or deducted from your paycheck. Private companies sell many different types of disability insurance, so it’s important to review your plan. Most private insurance will allow for partial disability. Unlike SSDI, there usually are time limits for how long you can receive benefits for private insurance, depending on whether you have short-term disability or long-term disability insurance.

Since most private insurance is tied to your employer, see if you can take your insurance policy with you if you leave your employer. If your private insurance is portable, you’ll continue to pay the premium, even if you leave your job.

Can I Receive Multiple Benefits?

Short-term injury — Image Source: Pexels

Yes, in some cases you can receive benefits from SDI or SSDI and private insurance. The amount that you receive from SSDI or state disability insurance will not decrease. However, private insurance policies may decrease your payout of benefits based on the amount that you are receiving from state disability insurance or SSDI. So, your monthly amount of benefits may be the same. Again, every private plan is different so contact your insurance company about your plan.

Are Benefits Taxable?

SSDI are typically not taxable income. The same is true for state disability insurance. If you are receiving unemployment benefits when you apply for disability however you may be taxed. This is because unemployment benefits are taxable and your disability insurance is seen as a substitute for you unemployment benefits. Private disability insurance is also not taxable because your premiums are paid with wages that have been taxed.

Can I Transfer My Policy?

As a rule, disability insurance can’t be transferred to another person. It is possible to designate a representative who manages your care. They may need to be interviewed or go through additional steps to manage your benefits for you.

If you move, your SSDI can be transferred to a new state. Of course, state disability insurance requires you to live in eligible states. Private insurance should also be notified of a move.

Choosing The Right Disability Insurance

Choosing insurance right for you — Image Source: Pexels

Now that you have an overview of the insurance options that may be available to you, you can make an informed choice about which is best for you. You can always contact your state or social security office for more information about state and federal programs. An injury lawyer or your employer’s HR department may also be able to assist you.

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