High Medical Debts Can Devastate Personal Finances

   

Posted: Feb 12, 2009

For some Americans, high medical debt has pushed them into bankruptcy and destroyed their credit scores. However, there are some steps that people can take to protect themselves.

A recent Associated Press article notes that as many as one-third of all working Americans are struggling because of medical bills, while about 46 million currently lack health insurance — a number that could go higher in the coming months as unemployment continues to rise.

The report notes that healthcare providers are also becoming more aggressive about collecting debt, but cites various debt experts who say patients can often reduce a medical bill by about 15 percent before seeking formal assistance.

For example, hospitals are often willing to work with patients who cannot pay the full cost of treatment through payment plans, debt forgiveness or other options, such as working with a patient advocate. Patients are also encouraged to carefully check their bills for errors and to keep close tabs on their insurance coverage.

Even patients who are facing smaller medical costs are having trouble in this economy. A recent survey by Epocrates.com notes that 95 percent of physicians are concerned that their patients are cutting back or skipping prescriptions to help make ends meet.