JACKSONVILLE, Fla. – Health care costs are putting new pressure on family budgets — and it’s not just from insurance premiums.
Medical debt remains one of the top reasons people consider bankruptcy, according to Forbes. Even with insurance, many patients are paying more out of pocket for monthly premiums, prescriptions and co-pays. But there is some relief when it comes to how medical debt affects credit scores.
Forbes reported that small medical debts under $500 no longer appear on credit reports, paid medical collections are removed and newer scoring models give medical debt less weight. That can help protect credit scores, but it doesn’t erase the financial strain when a large bill arrives.
Experts say bankruptcy is no longer the first or only option for people overwhelmed by medical expenses — and in many cases, it may not be necessary.
Consumer Reports recommends starting with the provider. Many hospitals and doctors’ offices are willing to negotiate bills, set up payment plans or screen patients for financial-assistance programs that can significantly reduce what they owe.
Experts also urge patients to confirm that their doctors and hospitals are in-network before receiving care. Insurance networks can change from year to year, and out-of-network services are one of the fastest ways for medical bills to balloon.
Prescription costs are another area where asking questions can pay off. Patients can talk with their doctors and pharmacists about generic alternatives, discount programs and manufacturer coupons that may lower monthly costs without sacrificing quality.
Financial counselors say medical debt is common, but it doesn’t have to lead to financial ruin. Understanding options early — and asking for help — can make a difficult situation easier to manage.