Requesting Help

• Hospitals and medical offices, unlike credit card companies and other types of creditors, do not make their money by charging you interest. They simply need to be paid for the services they have provided you. As a result, you may find them easier to negotiate with than credit card companies. When you have a medical bill you cannot afford, the first thing to do is call the health care provider immediately. If you wait too long, the bill may be turned over to a collection agency, which may be much harder to deal with than the original debtor. If you can show that your financial position makes it impossible to pay the bill, the hospital may write off part or all of the bill as charity care. Be prepared to provide details about your financial status, such as sources of income. If that does not work, you may be able to get the bill discounted and you may be able to get favorable terms, such as a low monthly payment or deferred payments. Hospital administrators know that if they do not take what you are able to pay, on the terms you are able to pay it, they may end up not getting paid at all. Hospital financial counselors may be able to refer you to government programs or nonprofit agencies in your area that can help you with the debt.
  
  

Medicaid

• Talk to the hospital's financial counseling office about applying for Medicaid. It is a federal program administered by the states to help the needy and people with certain disabilities get care. Eligibility requirements and other details of the program differ from state to state. In some cases Medicaid can help with medical debts you have already accrued. In Wisconsin, for example, when you are approved for Medicaid, the program can cover bills from about three months prior to when you applied if you meet eligibility requirements.
  
  

Bankruptcy

• There may come a time when you have done all in your power to address your medical debts and still have fallen short. The results can be ugly: judgments, liens, garnishment of wages. If you see no hope of ever paying off the debts despite your best efforts, it may be time to file bankruptcy. This can be a way to discharge the medical debts. A lawyer can advise you on filing this type of action. Bankruptcy wrecks your credit, but it can be appropriate for people who need a second chance and have no other way to get it.