Paying doctor bills...

[JAMIESMITH]

My husband has health insurance through his job, but my daughter and I are on separate individual policies because my job doesn't offer insurance.

My daughter is in her first year of kindergarten and has been to the doctor five times since school started. The office visits are about $60 each since we haven't met the deductible, but the prescriptions are killing us!

The bigger problem is that I've been paying on doctor bills my husband accrued when he was having shoulder problems earlier this year. Even sending just $25 to each provider adds up when you are sending money to five or six different places!

I found a lump in my breast a few months ago and I was sent for a biopsy. Thankfully, it was not cancerous, but now I have another $2000 in medical bills.

We sold our Jeep and had intended to use the money we got from it to pay towards my husband's truck (not enough to pay it off, but it will make a good dent), but now I'm thinking I should knock out all the medical bills so that I'm not sending money to so many different places. My husband thinks I'm crazy to pay off bills that aren't accruing interest, but if I could get this weight off I would have a much easier time getting our normal bills paid.

We don't have credit card debt. We have the one truck note and our mortgage and then it's just utilities and insurances. Would you pay the all the doctor bills in full now or just keep sending them a little along? Or maybe pay off the smaller ones so that I'm only sending money to one or two doctors?

It kills me to pay so much for health insurance and still have a high deductible. My husband is disgusted that he will have sold his Jeep and end up giving half the money to doctors and hospitals.

I know we have to pay our bills, even the medical ones that insurance won't help with. It just seems like everything is going up but our pay!

Thanks for any advice you can give!

 

[lauti]

Bills are bills no matter who you are paying. Have you contacted the doctors or hospitals and asked about payment plans or discounts for paying in full?

Have you shopped for new insurance? Can you be covered by your husband's insurance?

 

[DOREEN1779]

Talk to the medical providers billing office that you have outstanding bills . If you have a payment plan st up, they may discount the amount owed if you ask them if there is a discount for paying off your bill in cash. I know people who have saved up to 40percent by paying their responsibility of the bill all at once instead of a payment plan.

 

[supersnoop]

Generally speaking, a provider won't discount a bill that has been filed with insurance and identified as part of your deductible. They've already been hit with the insurance's negotiated rate, so they don't have a lot of room to discount further.

You mentioned how high your deductible is. Do you have a Health Savings Account (HSA)? If your plan qualifies as a High Deductible Health Plan (HDHP), then you can put money into this special type of account and pay medical bills with the money. The money you put in is exempt from taxes, so if your highest marginal tax rate is 25%, you'll save that much by funneling the money through the account.

An HSA can only be used to pay for services and medicine after it's established, so it won't help you with your past bills, but it should help with any on-going prescriptions and new medical bills.

 

[smokeyblue]

Pay those bills. Medical establishments will send you to collections in a heartbeat. I learned the hard way. If you can keep yourself out of having a bad credit score by all means do it!

 

[LaurLaur04]

Any of the bills that are with a hospital, check to see if they have charity. You may not qualify but it doesn't hurt to try. My office gives discounts with high deductibles but only if you pay in full at time of service. We do not give any discounts after the fact. Can you not get on your husbands insurance?

 

[C-CMom]

... but the prescriptions are killing us!

Can you get generic medications? Ask your doctor(s) if there is a cheaper generic equivalent available.

Some pharmaceutical companies offer coupons discounts if you do need a brand name drug. Check their websites.

Are you being careful to use "in-network" physicians, offices, labs, radiology, and hospitals? If a provider is out of your insurance network (ie, not obligated to give a discounted rate), you will pay significantly more for any amount above the insurance company's "maximum allowable charge" as well as usually higher percentage of the total charges or higher copay.

While the physician office may be obligated (by contract with the insurance company if an in-network provider) to collect your deductible or co-pay, they may be more tolerant of paying over time if they are aware that you do plan to pay, but need some extra time.

The Flexible Medical accounts (similar to the Health Savings Plan that supersnoop described) are a great way to use pretax dollars to pay for medical expenses (thereby avoiding paying federal income tax on that money) if your employer has one of these plans. However, you usually can only set those up once per year, then pay for expenses in the following year. So, it wouldn't help you now. If it is available to your (or spouse), you could think ahead to next year. You do have to be cautious to not OVER estimate the amount you need since remainders are not returned (there are details to review on this when you set up).

Regarding to whom payments should be sent first...personally I agree with your husband to pay more to the ones accruing interest. I also like your idea of getting a mental boost of sorts by paying a couple of the small(er) bills off completely, then working towards the rest.

Good luck

 

[Suz D]

Pay those bills. Medical establishments will send you to collections in a heartbeat. I learned the hard way. If you can keep yourself out of having a bad credit score by all means do it!

I got the feeling from reading the OP that she wasn't thinking of NOT paying, but that her husband was saying pay less on those bills that aren't accruing interest and apply the proceeds from the sale of the jeep towards the truck payment because it has interest. And that she was thinking she should basically snowball the smaller bills so that she'd have them off her mind and pay off as much of the medical bills as possible. I could be wrong though.

I think paying off the small bills to get them off her mind, the balance of the proceeds to the truck, and then chipping away at the big medical bill would be the way to go.

Our hospital offers a discount even after the insurance adjustment has been made and all that's left is deductible and co-pay. It's usually 30% which is huge.

 

[bumbershoot]

Pay those bills. Medical establishments will send you to collections in a heartbeat. I learned the hard way. If you can keep yourself out of having a bad credit score by all means do it!

Some of them REALLY will.

I got the feeling from reading the OP that she wasn't thinking of NOT paying, but that her husband was saying pay less on those bills that aren't accruing interest and apply the proceeds from the sale of the jeep towards the truck payment because it has interest. And that she was thinking she should basically snowball the smaller bills so that she'd have them off her mind and pay off as much of the medical bills as possible. I could be wrong though.

I think paying off the small bills to get them off her mind, the balance of the proceeds to the truck, and then chipping away at the big medical bill would be the way to go.

Our hospital offers a discount even after the insurance adjustment has been made and all that's left is deductible and co-pay. It's usually 30% which is huge.

I got the same impression you did, but ALL it takes is as low as ONE missed payment and some offices WILL send you to collections. It's absolutely awful.

So unless they are on actual payment plans with money being deducted from their account, mistakes can be made, and it can happen.


I know know KNOW how painful it is, I'm so emotionally with your husband on this, but the bills should be paid.

Then, if you feel like it, add up all the money you *have been* sending each month to doctors and put it towards the car payment. So you've got your normal car payment and then that little bit extra. It will add up.

 

[JAMIESMITH]

I got the feeling from reading the OP that she wasn't thinking of NOT paying, but that her husband was saying pay less on those bills that aren't accruing interest and apply the proceeds from the sale of the jeep towards the truck payment because it has interest. And that she was thinking she should basically snowball the smaller bills so that she'd have them off her mind and pay off as much of the medical bills as possible. I could be wrong though.

I think paying off the small bills to get them off her mind, the balance of the proceeds to the truck, and then chipping away at the big medical bill would be the way to go.

Our hospital offers a discount even after the insurance adjustment has been made and all that's left is deductible and co-pay. It's usually 30% which is huge.

I'm definitely not considering not paying the bills. I'm just frustrated by how quickly they have piled up and trying to prioritize.

I think I'm going to do what you said: pay off all the little doctor bills, send the balance towards the truck, and then make payments on just the biggest one or two medical bills.

Thanks for your advice

Some of them REALLY will.




I got the same impression you did, but ALL it takes is as low as ONE missed payment and some offices WILL send you to collections. It's absolutely awful.

So unless they are on actual payment plans with money being deducted from their account, mistakes can be made, and it can happen.


I know know KNOW how painful it is, I'm so emotionally with your husband on this, but the bills should be paid.

Then, if you feel like it, add up all the money you *have been* sending each month to doctors and put it towards the car payment. So you've got your normal car payment and then that little bit extra. It will add up.

My husband's credit has been in ruins since before we got married. His first wife got their home in their divorce, but was unable to refinance it in her name only. It was foreclosed on in 2002 and I've been trying to help him rebuild his credit ever since. My credit is perfect and it needs to stay that way because it is still difficult for my husband to borrow money. Our home and his truck are both actually in my name only. I think hospitals used to be a lot more lenient about sending people into collections, but they aren't now!

Thank you!

 

[*Seanaci*]

It can't hurt to call and ask each doc/med office you're paying if they have a forgiveness program. My sister had kidney stones, no insurance, and a high ER bill. She filled out an application or form and the hospital ended up forgiving/waiving her entire bill. The worst that can happen is they tell you no. And you're right back at square one: what to pay off vs what to continue paying on.

DH and I racked up some serious debt when our son was born and I became a stay at home mom. After talking to several debt consolidation and settlement companies, we were told no cc or collection agency will send back a payment you make toward your account. Money is money after all.

No matter what you decide to do, you'll have a few less bills to pay...and a little less stress weighing you down.

 

[ruadisneyfan2]

I agree with pp who mentioned a Flexible Spending Acct for medical costs. You don't pay/owe fed income tax on that amount. We're a family of 4 with very little OOP medical costs ($25-30 copays and that's it.) and 2 yrs ago I did a trial run of $800 for the year. We plowed through that by May. Now we both do the max: $2500 for each of us, so $5000/yr.
This past year it all went to braces for our boys but in 2014 we should have some leftover to use for dr appts.
Judging by your description of your OOP medical costs, I would do the max in a heartbeat. Chances are it's too late to start it for 2014. At my job anyway we're past the deadline to sign up.

They make it really easy by giving you a special credit card to pay eligible costs. Your entire year's amount is available to you as of Jan 1 however they continue to deduct from your pay all year. If you're paid biweekly, the full 2500 comes to $96.15 per pay. It would probably be around $65-70 (after taxes) extra in your paycheck if you don't opt for this.

 

[ruadisneyfan2]

OP, I agree with your dh. Put the proceeds from the sale of the other vehicle toward the debt that is accruing interest. It will save you possibly hundreds in the long run. Paying the dr bills up front may save you time and stress but not necessarily $.
For dh's truck payment (2 trucks ago) because of the timing of how we were paid and the due date of the monthly payment, I always paid at least a week early. This was back in the day of payment booklets. The last payment page didn't have an amount, just said, "You will get a bill in the mail for this payment." When that bill came and it was $50 cheaper than the regular amount I asked why and was told it was the interest savings from paying a few days early each month. This was a 4 yr loan. I'd imagine that paying thousands up front/early it would be even more savings.
IIRC, I think Chase has a calculator that can tell you a new payoff date if you pay extra.

 

[dsneprincess]

I also would put the money towards the truck, unless you have a low or 0% interest which it doesn't sound like is the case. I would keep paying towards all the rest if they don't have interest. I know this is stressful, but it let's your money work for you best. By saving the interest on the truck, you will actually have more money coming because of the savings. In regards to your daughters prescriptions, I would definitely ask the doctor for the least expensive option & I would call multiple pharmacies for the "cash" price. Usually a small mom and pop pharmacy or a grocery store or big box, will be fairer in setting a cash price than a chain drugstore because they are either more aware of their buying price(mom&pop) or make their money in other departments (grocery/big box). If the next prescription is still too high, ask if there is something less expensive &pharmacy will call doctor to change if need be. Happens all the time. Hope you can get this all worked out soon.

 

[robinb]

I feel your pain, OP. We racked up a TON of medical bills this year. I would also put money toward the truck since you're paying interest on it and leave the medical bills the way they are. I would get on an official payment plan with the biggest ones and allocate a certain amount to medical bills and "snow ball" them as someone suggested (ala Dave Ramsey). Pay the absolute minimum on most of them and more on the smallest until it is paid off. Then, apply that payment to the next smallest (along with its minimum), etc, etc until you are paid everything off.

 

[wiigirl]

Talk to the medical providers billing office that you have outstanding bills . If you have a payment plan st up, they may discount the amount owed if you ask them if there is a discount for paying off your bill in cash. I know people who have saved up to 40percent by paying their responsibility of the bill all at once instead of a payment plan.

 

[supersnoop]

I agree with pp who mentioned a Flexible Spending Acct for medical costs. You don't pay/owe fed income tax on that amount. We're a family of 4 with very little OOP medical costs ($25-30 copays and that's it.) and 2 yrs ago I did a trial run of $800 for the year. We plowed through that by May. Now we both do the max: $2500 for each of us, so $5000/yr.
This past year it all went to braces for our boys but in 2014 we should have some leftover to use for dr appts.
Judging by your description of your OOP medical costs, I would do the max in a heartbeat. Chances are it's too late to start it for 2014. At my job anyway we're past the deadline to sign up.

They make it really easy by giving you a special credit card to pay eligible costs. Your entire year's amount is available to you as of Jan 1 however they continue to deduct from your pay all year. If you're paid biweekly, the full 2500 comes to $96.15 per pay. It would probably be around $65-70 (after taxes) extra in your paycheck if you don't opt for this.

To clarify, I recommended an HSA, not an FSA. A high-deductible health plan (HDHP) is required to be eligible for an HSA. Unlike an FSA, the account is more like a savings account where you can only use the money you've banked, but it's your money to control. In an FSA, if you don't use the money, you lose it at the end of the year.

 

[yoopermom]

We have insurance through DH, but have a 3K deductible, so I feel your pain.

I have learned, over the years, that, in my case, our doctors' offices are more willing to take small payments monthly, and that the local hospital is a *killer* when it comes to sending you to collections quickly. So as soon as I get the bill, I call the drs office and just say honestly, "We're in a financial crunch, I know we owe you this much, and I'm able to send you X amount towards it monthly. I promise not to miss any payments, will that be ok." 99 times out of a 100 it is. (Make sure and write down who you talk to, date, time, etc.) This way I can get the hospital bill paid off quicker, since I know what they'll do to me otherwise .

*If* they will agree to payments, then I would put more towards the truck.

And when it comes to scrips, definately let the doctor know about your financial situation, they can sometimes prescribe something that's a generic or less expensive. Pharmacy shop as well, and use their loyalty program if they have one.

I know it's frustrating, really! Hang in there, and good for you for being financially responsible, I know it's not easy....

Terri

 

[Suz D]

I also would put the money towards the truck, unless you have a low or 0% interest which it doesn't sound like is the case. I would keep paying towards all the rest if they don't have interest. I know this is stressful, but it let's your money work for you best. By saving the interest on the truck, you will actually have more money coming because of the savings. In regards to your daughters prescriptions, I would definitely ask the doctor for the least expensive option & I would call multiple pharmacies for the "cash" price. Usually a small mom and pop pharmacy or a grocery store or big box, will be fairer in setting a cash price than a chain drugstore because they are either more aware of their buying price(mom&pop) or make their money in other departments (grocery/big box). If the next prescription is still too high, ask if there is something less expensive &pharmacy will call doctor to change if need be. Happens all the time. Hope you can get this all worked out soon.

She actually won't have more money coming in, but will save more in the long term. Let's say she has 5 medical bills plus the truck. All these numbers are hypothetical.
Bill 1 is $400 and she pays $25/month
Bill 2 is $200 and she pays $15/month
Bill 3 is $600 and she pays $40/month
Bill 4 is $400 and she pays $25/month
Bill 5 is $2000 and she pays $200/month

If she pays $1600 on those 4 smaller bills and the rest on the truck, she has an additional $105/month to add to a possibly tight budget. I can't remember if she said what the interest rate was on the truck, but ours was 1.9% when we bought our van (financed because we got $2000 cash back if we did. Just applied that to the van and saved a lot)

I know that this would not make the most sense in the LONG term, but the interest that she would be paying on that amount for the truck would not be putting $ in her poacket now. The only other thing would be if the largest hospital bill would be substantially discounted if she pays in full. if they discount 20% on a $2000 bill that is more than she would save in interest by applying the whole thing to the truck i would think. The final thought is with several smaller bills floating around its more stressful keeping track of everything.

 

[JAMIESMITH]

Update: I have paid all of the small doctor bills off. They added up to about $1000, but I was paying about $200 a month (between $25 and $50 a month to each place) and didn't feel like I was getting anywhere. I called about both of my large hospital bills. One hospital discounted the bill from $1200 to $800. I put that on my credit card, but will pay it off at the end of the month. I wanted the rewards points The second hospital is being really unreasonable. They originally told me that I would owe $700. The bill I got in the mail is $1300. I am trying to get them to explain the difference, but I'm not getting anywhere. They offered me a 10% discount if I could pay the bill now. I told them that they will have to set me up on a payment plan, but that I first want to know why it is $600 more than what I was told it would be. I'm also planning to call my insurance company to see if they can help.

The interest rate on my husband's truck is 8% because it is over five years old. I'm going to send $4000 towards that balance. Hopefully without so many doctor bills eating up my budget, I can afford to send more towards the principle balance.

Thank you all for your advice! It's so frustrating to see money go out faster than we can bring it in.