Dealing with Health Issues and Avoiding or Tackling Medical Debt

Health issues can be a significant financial burden, especially if you don't have health insurance or have a high-deductible plan. Medical debt is a severe problem in the United States, with many people struggling to pay their medical bills. Medical debt is the number one reason consumers file for bankruptcy. Here are some tips on how to avoid or tackle medical debt:

1. Get health insurance - The best way to avoid medical debt is to have health insurance. If you don't have insurance, you may be able to enroll in a government-sponsored program like Medicaid and check out Healthcare.gov to find coverage in your state. Post-COVID, some new healthcare subsidies were created, so there are more affordable plans across more income levels. Your employer may offer health insurance as a benefit if you're employed

2. Negotiate your bills - If you receive a medical bill you can't afford, try negotiating with the provider. Many providers are willing to work out a payment plan or offer a discount if you pay in full. The nonprofit Dollar For will help you reduce your medical bills by leveraging charity care, which hospitals must provide. Companies like Resolve Medical Bills will also resolve medical bills on your behalf for a fee. 

3. Use a healthcare savings account—If you have a high-deductible health plan, you may be eligible for a healthcare savings account (HSA). An HSA allows you to save money tax-free to pay for medical expenses in an account that never expires. 

4. Shop around - If you need a medical procedure, shop for the best price. Prices can vary widely between providers, so it pays to do your research.

5. Ask for help - If you're struggling to pay your medical bills, don't hesitate to ask for help. Many hospitals and clinics have financial assistance programs for low-income patients.

6. Don't ignore your bills—Ignoring your medical bills will not make them disappear. Contact the provider and devise a payment plan if you can't pay your bills. Unpaid bills are turned over to debt collectors, and these debts can be reported to the credit bureaus, potentially hurting your credit score. 

7. Consider bankruptcy—If you have a significant amount of medical debt and can't pay it off, consider filing for bankruptcy. While this is a drastic step, it may be the best option, but it should be the last resort. Bankruptcy stays on your credit report for ten years. 

Dealing with health issues can be challenging enough without the added stress of medical debt. By avoiding or tackling medical debt, you can focus on getting better and not worry about financial issues. Remember, help is available if needed, so don't hesitate to ask.