Medical Debt

Medical debt is a specific type of debt arising from the use of medical services, treatments, or certain procedures that have been received but are not fully paid for due to various reasons. Typically, the cause of medical debt is that the received services are not covered by the insurance policy or the cost of such services exceeds the maximum amount the insurance company is willing to pay. This debt also arises for those who use medical services without any insurance, often affecting foreigners and socially vulnerable categories of the population.

Another reason for such debt can be the unexpected and complex nature of health situations. These can include sudden issues such as accidents or emergency surgeries and complex procedures that become necessary during planned treatments, all of which can lead to large bills that are difficult to pay off immediately. Sometimes, the cause of such debt is a chronic illness that requires constant treatment. However, the main and most common cause of significant debt to medical institutions is the lack of medical insurance.

The occurrence of medical debt, like other debts, affects the credit rating and the ability to use credit limits in the future, influencing the calculation of interest rates for various types of loans.

Why Is It So Expensive? What Constitutes Medical Debt?

A medical bill consists of various expense items. They usually include payment for the medical services, diagnostic tests, blood tests, X-rays, CT scans, and MRIs, as well as accommodation and meals during the hospital stay. These expenses also include surgical procedures, including payment for the surgeon’s work, the anesthesiologist, and time in the operating room. The cost of each doctor’s visit and the medications prescribed according to the medical plan are also included in the list of components that make up medical debt. In some cases, it also includes expenses such as physical therapy, occupational therapy, and other rehabilitation procedures.

What to Do if You Have Medical Debt?

First and foremost, check whether this medical debt must be paid. There are instances of erroneous charges for services that the person did not actually use, or these amounts were overcharged. In such cases, these amounts should be disputed, and they will be reduced or completely written off. If a medical policy is in place, make sure that the corresponding insurance claims have been processed. There are situations where it is an insurance case, but the insurance company did not cover these expenses for some reason. In such cases, you need to consult with the insurance company again — most of the time, these issues are quickly resolved, and the policy does cover the incurred hospital expenses. If not, there is the option of financial charity assistance, which can also be utilized.

Financial charity assistance for treatment is provided according to popular support programs for patients who, for various reasons, cannot pay their bills. In 99% of cases, the hospital cooperates with the patient and offers available options on dealing with medical debt and which aid programs to apply for. The aid is provided with a delay, so during this period, the medical debt remains with the patient. You can also discuss the existing medical debt with the billing department and develop a debt repayment plan manageable for you. Having such a step-by-step plan makes managing medical debt much simpler.

Another option to deal with medical debt is to get a medical credit card. This product has a grace period and special repayment conditions. Medical loans are not available in all banks, so it is necessary to research the availability of such an option in each case, as well as the conditions and interest rates applicable to such accounts.