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A12 BUSINESS
Tuesday 4 OcTOber 2022

Kimberly Palmer: How to handle your

medical bills

By KIMBERLY PALMER of
NerdWallet
When she was 19, writer
Emily Maloney found her-
self facing about $50,000 in
medical debt after hospi-
tal treatment for a mental
health crisis. The debt fol-
lowed her throughout her
twenties, hurting her credit
and leading to stressful
calls from collection agen-
cies.
Her experience is all too
common: The Consumer
Financial Protection Bu- Debra Smith sorts through her medical bills in her living room on
reau reports that about 1 Thursday, Oct. 7, 2021, in Spring Hill, Tenn.
in 5 U.S. households carries Associated Press
medical debt. People with
medical debt are more REVIEW YOUR BILL CLOSELY grams varies by state and
likely to face anxiety, stress It can be tempting to hospital, but nonprofit hos-
or depression and avoid fill- shove a large bill into the pitals are required to have
ing prescriptions because trash in frustration. But Dan financial assistance poli-
of the cost. Weissmann, creator of “An cies. Hospitals may also of-
The risk of “medical debt Arm and a Leg,” a podcast fer payment plans, so you
looms over every consum- about the cost of health have more time to pay.
er and impacts their lives,” care, instead recommends Hospitals can also connect
says John McNamara, as- checking closely for errors you with financing options
sistant director of consum- made by the care provider such as personal loans
er credit, payments and or insurance company. and medical credit cards,
deposits markets at the “It’s an unfair amount of which can be helpful but
CFPB. He adds that recent homework for us to do, be- also pose risks. The CFPB’s
changes to the way medi- cause if you find an error, McNamara warns that
cal debt is reported by then you have to complain credit cards, for example,
credit bureaus should help and invest your time, but can accrue additional in-
consumers: Paid medical some medical bills have er- terest charges.
debts will no longer show rors,” he says. BE PERSISTENT AND ENLIST
up on credit reports and Weissmann says it’s also SUPPORT
no new medical debt will worth checking your rights Lorraine Coughlin, presi-
show up until 12 months under the No Surprises Act, dent of LMC Medical
have passed (up from six which went into effect in Claims Management in
months). In addition, in the January 2022 and pro- West Palm Beach, Florida,
first half of next year, the tects consumers from some helps people work out
credit bureaus will stop re- types of unexpected medi- medical bills with insurance
porting unpaid medical cal bills. companies for a living. She
debts under $500. ASK YOUR PROVIDER FOR says the number one strat-
Eventually, Maloney’s debt ASSISTANCE egy is persistence.
was resolved through a Many hospitals offer finan- “You have to make the
combination of a helpful cial assistance to those who phone call and ask ques-
customer service represen- meet income thresholds. tions.
tative and exceeding her “If you get an amount you Don’t just make payments
state’s statute of limitations. weren’t expecting, call the if you get a surprise bill,” she
She wrote a book, “Cost of hospital and say, ‘Am I eli- says. Sometimes it might
Living,” based on her expe- gible for a discount? What take an hour or more, but
riences. She wants to assure is your policy on financial making that call can save
others facing medical debt assistance?’” says Richard you thousands of dollars,
that they can take steps to Gundling, vice president she says.
reduce it. at the Healthcare Financial Medical billing advocates
“It takes time, but you can Management Association , like Coughlin can do that
appeal the insurance com- an association of financial work for you, but they typi-
pany’s decision or ask (the executives in the health cally charge a fee and a
provider) for a discount, so care industry. percentage of any savings.
it’s worth a shot,” she says. Hospitals often have “char- McNamara warns there
In other words, consumers ity care” policies to grant a are predators who call
might have more power lower price or even forgive themselves billing or con-
than they think. Here are the debt altogether, but sumer advocates but in re-
some ways to exercise that consumers may have to ality, they could take your
power over your medical be aggressive in asking for money without providing
debt. them. Eligibility for the pro- any real assistance.q