Emergencies happen, and sometimes an unexpected visit to the doctor or hospital results in medical debt. In fact, as of 2022, 41% of U.S. adults had health care debt, according to data from the Kaiser Family Foundation, a nonprofit organization that conducts health policy research.
Medical debt can be challenging, but it doesn’t have to derail you from reaching your financial goals. Here are four ways to manage your health care expenses.
Ask About Financial Assistance Programs
Nonprofit hospitals are legally required to offer financial assistance as mandated by the Affordable Care Act. They provide assistance to eligible patients through a Financial Assistance Policy (FAP). These assistance programs can reduce or even eliminate medical bills based on income and other factors. The FAP specifies that patients with household incomes below 200% of the federal poverty level are eligible for free care. To apply, patients must complete an application form and provide documentation such as tax returns, pay stubs or proof of unemployment.
If you’re facing a large medical bill, an easy place to start is by researching the hospital’s financial assistance programs online. You can also reach out to the hospital’s billing department for more information. You might be surprised by the options available to ease your financial burden.
Example: Maria recently received a substantial medical bill after an emergency procedure. Knowing that nonprofit hospitals are legally obligated to offer financial assistance, she decided to investigate her options. Maria found that her hospital has a Financial Assistance Policy (FAP) designed to help patients in need.
Negotiate a Payment Plan
Many medical providers are willing to negotiate payment plans. Before agreeing to a payment plan, review your budget to determine the amount you can afford each month. Ask for a no-interest payment plan or offer a lump sum for a discounted bill. Many providers will accept a lower total if paid upfront. You can also use VyStar Financial Fitness modules for a better understanding on how to negotiate your payment.
Example: John received a $3,000 bill for a series of medical tests. John called the billing department and negotiated a payment plan with no interest charges. Additionally, he offered to pay $2,500 upfront if they would reduce the total bill. The hospital agreed, and John saved $500.
Look for Errors in Medical Bills
Medical bills can contain costly errors. To prevent them from eating into your budget, review every itemized bill to make sure you weren’t charged for services you didn’t receive, overcharged or charged twice. If you find a mistake, contact the billing department with documentation to support your claim.
Example: Emily received a bill for $1,500 after a hospital stay. She carefully reviewed the itemized bill and noticed she was charged twice for a blood test. Emily contacted the billing department and provided documentation to support her claim. The hospital corrected the error, reducing her bill by $200.
Get a Health Savings Account (HSA)
VyStar offers a Visa Health Savings Card for medical expenses, which can help you save for health emergencies. With a Health Savings Account (HSA), you can earn tax-free interest, and the interest rate improves as your savings increase. There are no minimum balance requirements or balance fees.
As of January 2025, certain types of medical bills are banned from credit reports. This means some unpaid medical bills won’t impact your credit score, making it easier to qualify for loans and other financial opportunities. This change is a significant relief that will allow you to focus on paying off your medical debt.
By taking these steps, you can manage your health care debt more effectively and keep your financial goals on track. With a little effort and persistence, you can navigate through medical debt while saving for your future.