You have heard the saying, health is wealth! But by today’s metrics, it would seem as though at least one third of the country will never become wealthy because they are drowning in medical bills and debt. A 2023 study from the Commonwealth Fund suggests that many individuals without healthcare insurance are drowning in medical debt. That would seem to be a reasonable justification for many who find themselves in debt. However, the study found that even for those with medical coverage, dental coverage or both sets of insurance coverages find themselves facing healthcare debt. The study found that 30% of those with employer medical coverage, 33% of those with Medicare coverage and 33% of those with the Affordable Care Act marketplace plan were facing medical debt.
Cost Drivers
If you ask me what is driving healthcare costs, my answer in a word would be lifestyle choices. This is the part of your healthcare cost you can manage and budget. I am referring to actions you can take on your own such as diet, exercise and rest. Think of the economic cost associated with lifestyle failures such as diabetes, hypertension, heart disease and cancer. According to the Commonwealth survey two out of five working employees have delayed or cancelled seeking medical treatment because they could not afford the potential medical bill. Is there something you could be doing right now, to mitigate or eliminate the economic burden?
Helpful Steps
The first thing you should do when you receive a medical bill is to confirm the charges are yours. Review the explanation of benefits (EOB) of the bill to ensure those procedures of services were indeed rendered and that they are yours. Communicate with your insurance and care providers and provide immediate notice if something is incorrect. While insurance companies may send your EOB in the mail, you can go through your EOB online and ensure that your insurance has paid all or a portion of the bill. You should examine the bill for duplicate charges, charges associated with medical costs you did not receive or out of network charges when you only received in-network services.
You want to point out these inaccuracies to your insurance company because even though you may not have to pay for those errors, it matters since you do not want your insurance provider to deny your future claims, in the event they believe you received those services in the past. Remember to reach out to your insurance or health care provider through email since it create a record in the event you choose to appeal if denied. If your healthcare provider or insurance fail to correct inaccuracies you can reach out to your state department of healthcare at www.usa.gov/state-health or reach out to your state attorney’s office for assistance .
Health in Installments
The next thing you should consider if you have medical bills you cannot afford is to develop a payment plan. In developing your plan, contact your provider. Your provider may be able to classify your bill as “charitable care.” Charitable care means either free or discounted payment. You can qualify for such assistance even though you have insurance. Along with seeking for your bill to be classified a charitable care, and if only a portion is forgiven, but a balance remains to be paid, ask for your balance to be established on a zero interest payment plan.
Some other factors to consider addressing your medical debt is to respond to any lawsuit or threats of lawsuits concerning medical debt collection. Why? You should respond even though you cannot pay because you want to reserve any legal rights you may have regarding this matter. Furthermore, when it comes to your rights, the Fair Debt Collection Practices Act, prohibits debt collectors from using unfair, abusive or deceptive practices. Some state laws such as California, Maryland, New York and others, prohibit debt collectors from reporting your debt to credit reporting agencies.
I will conclude with the impact of political change regarding medical debt. In early January prior to the change in administration, the Consumer Financial Protection Bureau had finalized law which prohibited the inclusion of medical debts on your credit reports. The law also made it unlawful for creditors to use medical debt information when considering credit lending decisions. However, under the new administration, the law is no longer being supported and is currently under legal challenges.
WHAT’S UP! Today’s What’s Up is about paying your medical bills. If you have a medical debt or bill, you should not use your credit card to pay the bill. Why? The moment you pay your bill by credit card it is not considered a medical bill. Furthermore, paying off your medical bill by credit card would typically mean you are paying a higher rate of interest. And that’s what’s up!
Ruthven R. Phillip, Esq., is a tax attorney, Stewardship and Philanthropy Ministry Assistant, and CEO of Give2Getrich, LLC. Give2Get Rich, LLC 2025. All Rights Reserved. Any distribution or reproduction of part or all of the contents in any form is prohibited.
