Beating Broke

Personal Finance from the Broke Perspective

10 Ways to Crush Medical Debt Without Destroying Your Life

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paying for medical debt
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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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Do Medical Bills Die With You? 5 Surprising Facts About Debt After Death

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Do medical bills die with you?
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Medical debt has become an overwhelming problem for many Americans. The Survey of Income and Program Participation (SIPP) estimates that Americans owe at least $220 billion in medical debt. More often than not, this debt slips into collections and is left unpaid. But what if you die before you’re able to pay off your medical debt?  Do medical bills die with you?

The short answer is medical bills don’t die with you. Medical debt though is considered unsecured debt. Unsecured debt includes things like student loans, credit card debt, and personal loans. These types of debt are handled differently than secured debt such as mortgages or car loans. While every situation is different, here we’ll share what happens to your debt after you die.

1. Your Estate is Responsible

Your estate pays your medical bills when you die
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Your estate will be responsible for your medical debt when you die. This means that all of your total assets will have to cover the cost of unpaid bills. If your estate is solvent, which means it can cover the debt, any unpaid medical bills will be settled during the probate process. Then any other assets will be distributed to heirs as dictated by the deceased person’s will. Some states however require heirs to be paid out first before any debts are settled.

2. Bill Collectors May Look to a Family Member to Pay

If your estate doesn’t have the funds to pay your medical debt, or is insolvent, usually the courts will determine how much creditors will receive for the debt. Sometimes, creditors completely write off the debt. Again, this is all dependent on federal and state laws. In some cases though, bill collectors may find next of kin to repay the debt such as a spouse, especially if you live in a community property state like California. If medical bills were co-signed, that person may be responsible for your unpaid debt.

3. Filial Responsibility Laws

Family taking responsibility for medical debt
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More than half of states have laws where adult children are responsible for their parent’s medical bills if they can’t pay. Usually, these laws don’t have to be enforced because Medicaid will cover the cost of these expenses. If the medical services aren’t covered by Medicaid though, your children could have to foot the bill.

4. Medicaid May Ask Your Estate to Repay Them

If you are a Medicaid recipient and over 55, when you die your state’s Medicaid may pursue your estate. Bills from nursing home care, hospital stays, or prescriptions could be collected from your estate. Your survivors won’t be held responsible, and debts will only be collected if you are not survived by a spouse or children under 21.

5. Does Medical Debt Effect Credit Scores?

Medical debt is handled differently than other forms of debt. However, if your medical debt is sold to a third-party collection agency, it can negatively impact your credit score after a period of time. Collection accounts for medical debt stay on your credit report for seven years which can significantly damage your credit.

Do Medical Bills Die with You?

While medical bills don’t die with you, how they are repaid after your death may vary. Each situation is unique so it’s best to contact an estate lawyer to discuss your specific situation. Are you worried about medical debt after you die? Leave your questions in the comments.

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Why My Health Became a Priority

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Why My Health Became a Priority

Growing up, my parents were overweight and inactive. I was chubby through most of my childhood and disliked physical activity. When I was in my 20s, I slimmed down and exercised sometimes, but not much. In my 30s, I still exercised occasionally, but not regularly, and my weight crept back up. I knew as I aged I should exercise more, but I just couldn’t find the motivation. That changed when I began to experience heart issues.

Why My Health Became a Priority

Heart problems run in my dad’s family. I always thought I was fine because despite my inactivity and being overweight, my bloodwork always came back normal. Cholesterol was in normal range as was blood sugar. I knew I’d have to get serious one day about my health, but I kept putting it off.

When I started feeling heart palpitations, I went to the doctor. I had a stress test, and the doctor told me I had a heart murmur, arrythmia, and PVCs. His prescription? Walk two miles every day.

Implementing the Doctor’s Advice

When I received this advice from my doctor, I was obese and inactive. I started walking and watching what I ate. At first, I could only walk a half mile a day. But the more I walked and lost weight, the easier it became. Now, a year after that doctor’s appointment, I’ve lost nearly 50 pounds and am walking two to two and a half miles a day. My heart issues have largely subsided, and even better, my fasting blood sugar has dropped nearly 15 points.

Getting Healthy Doesn’t Have to Cost a Lot

For the first few months, I walked outside. However, I spent $350 to buy a treadmill to avoid walking in the Arizona heat. That’s all I have spent on my journey to get healthier.

Why My Health Became a Priority

When I compare that cost to how much I would pay in medical bills and medicines I would need if I didn’t take care of my health, getting healthier is much cheaper.

Benefits of Prioritizing My Health

There are two major benefits to prioritizing my health.

I Feel Better

Now that I’m exercising regularly, I feel much better. I sleep better, and my body feels lighter and stronger. I am able to get more done in a day.

I Avoid Expensive Medical Interventions

I should have exercised regularly years ago. Who knows? Maybe if I had, I would have avoided having any heart issues or at least delayed their onset. But I can’t change the past. Instead, I’m focusing on eating healthy and exercising regularly. Even starting these habits in midlife can affect the quality of my life as I age and help me avoid expensive medical interventions.

Final Thoughts

Many of us are guilty of thinking we’ll start a healthy lifestyle. . .sometime. But I’m here to tell you there is no time like the present. Not only will you feel better, but you’ll save yourself money by avoiding expensive medical interventions and chronic conditions.

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