Has anyone ever had medical bills that are threatening to send to collections?

[traces7]

We have never been in this situation before and I'm not sure what to do. Because our health insurance deductibles are $2500 per person and my husband had 2 incidents in the last 2 years, we owe quite a bit on medical bills, and of course we all still go occasionally and keep adding to the balance, it's so frustrating and I just am not sure what to do.

They said we could go on a payment plan, but we can't afford the minimum they want us to pay. So we've just been paying what we can and hope they don't send it to the collection agency. I'm not sure how that even works, what happens if it gets sent to collections?

We've used all our flex spending for the year and paid as much as we can out of our pocket and keep paying as much as we can each month. They offer a loan with a local credit union for 5 1/2% interest that would extend the term out farther so we could have lower monthly payments. This is what I'm thinking of doing. Is that the best option?

Several of my co-workers have been in the same situation (we have horrible health insurance) and they just let it get sent to collections and then eventually just paid it off, but our balance is quite a bit higher, we wouldn't be able to pay it off in one lump amount.

Does anyone have any advice? Thank you so much!

 

[Toddupton]

With medical bills things are a little different than something like a credit card. Call them and let them know what is going on. They will offer you a payment plan and tell you an amount per month to pay. This is the part that most people don't know. You can pay anything you want! If they want you to pay $200 a month tell them you will pay $20 a month. After you tell them this that is the end of it. As long as you pay they will not send you to collections. They don't want to send you to collections since they always loose money when that happens.

 

[starry_solo]

With medical bills things are a little different than something like a credit card. Call them and let them know what is going on. They will offer you a payment plan and tell you an amount per month to pay. This is the part that most people don't know. You can pay anything you want! If they want you to pay $200 a month tell them you will pay $20 a month. After you tell them this that is the end of it. As long as you pay they will not send you to collections. They don't want to send you to collections since they always loose money when that happens.

What it sounds like is that the OP owes at least $5000 since her deductible is $2500/person/year (could be $10,000). No doctor is going to take $20/month on a $5000 bill (that would take 250 months to pay off just that). What could happen is that the doctor refuses to see you or your husband while the bill is outstanding - which is certainly within their right to do so. You can either make a payment plan OR you can see if they are willing to take less than what is owed if you pay one lump sum.

Once it goes to collections, it is sold for a certain amount and then it's up to the collections agency to determine what they are willing to take.

 

[eeyoreandtink]

What it sounds like is that the OP owes at least $5000 since her deductible is $2500/person/year (could be $10,000). No doctor is going to take $20/month on a $5000 bill (that would take 250 months to pay off just that). What could happen is that the doctor refuses to see you or your husband while the bill is outstanding - which is certainly within their right to do so. You can either make a payment plan OR you can see if they are willing to take less than what is owed if you pay one lump sum.

Once it goes to collections, it is sold for a certain amount and then it's up to the collections agency to determine what they are willing to take.

Medical bills don't work the same as regular debt. As long as you pay something every billing period, they can't go to collections. The doctor can refuse to see them,but if they are making sone kind of payment every billing period they cannot be sent to collections.

 

[traces7]

With medical bills things are a little different than something like a credit card. Call them and let them know what is going on. They will offer you a payment plan and tell you an amount per month to pay. This is the part that most people don't know. You can pay anything you want! If they want you to pay $200 a month tell them you will pay $20 a month. After you tell them this that is the end of it. As long as you pay they will not send you to collections. They don't want to send you to collections since they always loose money when that happens.

I have been paying what we can afford, but they want way more. They say I can keep doing this, but they can't guarantee that it won't go to the collection agency. Several of my co-workers have had theirs sent to collection, so they will eventually. The oldest of our bills are 2 years old.

What it sounds like is that the OP owes at least $5000 since her deductible is $2500/person/year (could be $10,000). No doctor is going to take $20/month on a $5000 bill (that would take 250 months to pay off just that). What could happen is that the doctor refuses to see you or your husband while the bill is outstanding - which is certainly within their right to do so. You can either make a payment plan OR you can see if they are willing to take less than what is owed if you pay one lump sum.

Once it goes to collections, it is sold for a certain amount and then it's up to the collections agency to determine what they are willing to take.

They have put a note on our bills that we will be refused treatment that isn't an emergency.
We don't have near enough to pay a lump sum.
So what should we do? Would it be best to take a loan out at 5% interest and payments that we could afford?

 

[TwoMisfits]

I have been paying what we can afford, but they want way more. They say I can keep doing this, but they can't guarantee that it won't go to the collection agency. Several of my co-workers have had theirs sent to collection, so they will eventually. The oldest of our bills are 2 years old.



They have put a note on our bills that we will be refused treatment that isn't an emergency.

So what should we do? Would it be best to take a loan out at 5% interest and payments that we could afford?

It probably would help to know how much the total bill is and what you are paying each month and how much more you could find to pay (and how much you like your doctors)...

 

[starry_solo]

It probably would help to know how much the total bill is and what you are paying each month and how much more you could find to pay (and how much you like your doctors)...

Agreed.

But I wouldn't take out a loan either. If you can't afford to make the payments on the doctor bills, you can't afford to make payments on a loan at 5% interest.

And I'm not sure what the other poster thinks that medical bills aren't like other bills where if payments are made, they can't be sent to collections. Other than a landlord accepting late payment that stops an eviction process (restarts the clock), any bill which is owed on can be sent to collections.

 

[Jajone]

Does the hospital system have a community care program you might qualify for? That's a program, income dependent, that discounts or writes off the bill. you have to fill out an application directly with the hospital. Maybe a HELP loan? I'm not very familiar with it, but its supposed to be interest free for a year.

 

[traces7]

We owe close to $4000. We've been paying about $100 a month. They want us to make a payment plan with them for $156 a month. That's just a little more than I think we can afford, but we may be able to do it. We've been trying to pay more if we can, so we can have a lower balance and lower monthly payment.

If we did the loan at the bank they would stretch out the term to 3 years and the payments would be about $89 a month.

We don't really particularly like or dislike our doctors, not sure what that has to do with it, though. We're stuck with a certain network of doctors and that is all that we can go to.
And medical bills can definitely be sent to collections, it's happened to several of my co-workers.

 

[traces7]

Does the hospital system have a community care program you might qualify for? That's a program, income dependent, that discounts or writes off the bill. you have to fill out an application directly with the hospital. Maybe a HELP loan? I'm not very familiar with it, but its supposed to be interest free for a year.

They sent us the paperwork for the program that they have and our income is just a little bit too high to qualify. Even though we really don't make a whole lot. They don't have a HELP loan, I'm not sure what that is

 

[TwoMisfits]

We owe close to $4000. We've been paying about $100 a month. They want us to make a payment plan with them for $156 a month. That's just a little more than I think we can afford, but we may be able to do it. We've been trying to pay more if we can, so we can have a lower balance and lower monthly payment.

If we did the loan at the bank they would stretch out the term to 3 years and the payments would be about $89 a month.

We don't really particularly like or dislike our doctors, not sure what that has to do with it, though. We're stuck with a certain network of doctors and that is all that we can go to.
And medical bills can definitely be sent to collections, it's happened to several of my co-workers.

I'd figure out how to find the extra $56/month. That's not so much higher than what you are paying. If you get a tax refund, I'd also put the entire amount towards the bill and just pay it off.

I asked if you liked the doctors b/c if you do and want routine treatment, the note on the file makes it impossible unless you pay this off. If you didn't care to see these docs for routine stuff, it wouldn't matter as much...

 

[traces7]

I'd figure out how to find the extra $56/month. That's not so much higher than what you are paying. If you get a tax refund, I'd also put the entire amount towards the bill and just pay it off.

I asked if you liked the doctors b/c if you do and want routine treatment, the note on the file makes it impossible unless you pay this off. If you didn't care to see these docs for routine stuff, it wouldn't matter as much...

I think that's what we'll try and do. But we keep adding to the balance. I just had to go in recently for an xray, so that will go on there too now. It's just never ending! We don't get that large of a tax refund to pay it off unfortunately!

They are the only doctors we can go to, it's all one system, so there are many doctors, but they are all connected and in the same system, so they all can see that we owe money. We actually owe money to a couple different doctors and the hospital all in our same network.

 

[TwoMisfits]

I think that's what we'll try and do. But we keep adding to the balance. I just had to go in recently for an xray, so that will go on there too now. It's just never ending! We don't get that large of a tax refund to pay it off unfortunately!

They are the only doctors we can go to, it's all one system, so there are many doctors, but they are all connected and in the same system, so they all can see that we owe money. We actually owe money to a couple different doctors and the hospital all in our same network.

If you continually are adding to the medical debt, I'd actually plan on always saving any/all of your yearly tax refunds just for medical deductibles. If you don't use it by Dec 31, then you can use the money for what you'd normally spend it on. And if you do need it, it's there. Won't work next year, but I'd start making it my annual plan. (For me, I lock off my refund for retirement and college fund savings, so I never spend it - it's hard for me to save, but it's the one time a year I can put real money into savings)...

 

[traces7]

If you continually are adding to the medical debt, I'd actually plan on always saving any/all of your yearly tax refunds just for medical deductibles. If you don't use it by Dec 31, then you can use the money for what you'd normally spend it on. And if you do need it, it's there. Won't work next year, but I'd start making it my annual plan. (For me, I lock off my refund for retirement and college fund savings, so I never spend it - it's hard for me to save, but it's the one time a year I can put real money into savings)...

That's a good idea. We always seem to need our refund for something else though! But if we can keep it from going to collections before tax time, at least we can pay part of it off with our refund.

 

[Aimeedyan]

Medical bills don't work the same as regular debt. As long as you pay something every billing period, they can't go to collections. The doctor can refuse to see them,but if they are making sone kind of payment every billing period they cannot be sent to collections.

Of course they can be sent to collections! Happens all the time (and has happened to us!).

Both hospital networks I've used in the last 10 years will give you a short amount of time to pay off your balance and then you get the joy of making payments directly to a bank - with interest - until it's paid off. I assume that hospitals are struggling to recoup medical costs and are now no longer allowing people to just make small amounts for the rest of their life.

OP, if it hits collections, you'll likely accrue other fees along with harassing phone calls and letters. If it's possible at all to come up with the monthly payment they are offering, I would try to make it work. Maybe if it becomes too much of a hardship after a few months of trying, you could opt then to set up the plan with the 5% interest? I would assume they'd allow you to transfer the debt to the bank at any point before it's paid off. The tax refund advice is a good one, too!

 

[LovesTimone]

There job is to try to get a certain amount from you.... But you can't get blood from a turnip is what my granny always used to say... Maybe you could get them to agree with a number in the middle of what your paying and what they want you to pay, say maybe 125.00 then when your tax return comes just pay it off.

I would not borrow money to pay it, that's just not a good move in my opinion. They could be pushing you to do this, sometimes there are incentives/kick back for the hospital, or doctors office. A lot of times if you go in person to the hospital to make financial agreement it seem to work out a lot better, face to face is much more personal.

Not sure about your stance on Credit cards, you could look around for one with no interest for 12 to 24 months... and maybe some other incentives, like airline miles or cash back and pay it off that way... This way you have that off your plate and CC charge a minimum balance, and you can over pay that and get it paid off when your refund comes. Just a suggestion...

You might want to have a yard sale, or sell some stuff online like eBay for some extra cash to help out. Also maybe have DH look into Uber or Lyft, easy way to make some extra cash.

 

[kymom99]

I'd do their payment plan. If you are a few days late they shouldn't care too much. We had a payment of $110 a month

 

[DawnM]

With medical bills things are a little different than something like a credit card. Call them and let them know what is going on. They will offer you a payment plan and tell you an amount per month to pay. This is the part that most people don't know. You can pay anything you want! If they want you to pay $200 a month tell them you will pay $20 a month. After you tell them this that is the end of it. As long as you pay they will not send you to collections. They don't want to send you to collections since they always loose money when that happens.

Ours doesn't allow us to just pay whatever we want. They say we have to pay a min. of X amount.

 

[traces7]

Ours doesn't allow us to just pay whatever we want. They say we have to pay a min. of X amount.

Ours doesn't either, they just say you can pay what we want and be on a payment plan, or pay whatever you want and you won't be on a payment plan and it would possibly get sent to collection.

 

[KellyT39]

Good Morning - First time poster here. OP - have you spoke to the hospital network about charity care? Here is an example of how our network handles persons with financial obligations that they cannot fully pay: https://www.mainlinehealth.org/about/policies/charity-care.

I hope that this is helpful to you.