High costs can cause some people to
skip checkups or take on debt.
By Jessica Merritt,
Contributor Oct. 19, 2020, at 9:30 a.m.
HEALTH
CARE IS AN unaffordable necessity for many Americans before the coronavirus
pandemic, people grappled with the cost of adequate care.
With a second wave of
the virus looming,
U.S. News polled nearly 1,500 consumers about how they manage medical costs and
whether they've found themselves saddled with medical debts.
Serious medical debt for
some can lead to bankruptcy or
delayed treatments or prescriptions when money dries up.
Key findings from the
survey include:
·
Nearly 39% of respondents had serious trouble managing medical
bills, with at least one bill sent to collections. Almost 7% have been sued for
medical debt.
·
Nearly 6% declared bankruptcy because of medical bills.
·
Inadequate insurance coverage can fuel medical debt. Even with
insurance, Americans can amass medical bills that lead to debt. Only 27% of
respondents with medical debt were uninsured; 61% were underinsured with a
high-deductible plan.
·
Health care costs can change how consumers manage their care.
About 44% of respondents have postponed seeing a doctor. Other cost-related
changes to care: trying home remedies, declining treatments, or delaying or
skipping prescriptions.
·
Paying for medical care can eclipse basic expenses, major
purchases and vacations – some people even dip into savings or retirement
accounts to manage costs. Almost half of respondents said they've had to cut
expenses because of medical debt.
·
More than half of respondents said they have used a credit card to
pay for medical bills.
·
Taking out a loan to pay
medical debt is less common than using a credit card, although
interest rates on loans could be lower than credit cards. About 23% of
respondents said they have used a loan to cover medical bills.
·
Negotiation is possible: Many respondents said they were able to
work out payment plans or discounts. Although negotiation was unsuccessful for
about 20% of respondents, 35% said they worked out a payment plan and 11%
secured a discount.
·
Checking bills could
also offer savings. Among respondents, 28% said they have found and corrected
mistakes on medical bills.
What
Are Your Options When You Can't Pay Medical Bills?
Medical
debt can feel like an impossible situation. Delaying or avoiding medical care
can be dangerous, but medical bills can be hazardous to your finances. What can
you do?
First, manage expenses
and take advantage of any assistance available to you. Then, consider the best
way to pay for what you owe.
Try these options
to get help paying
medical bills:
·
Ask your doctor about cost-saving options.
·
Check bills for errors.
·
Negotiate a payment plan or ask for a discount.
·
Apply for financial assistance.
Some consumers take
out personal loans to pay
for medical bills. For many, a personal loan is the safest, most affordable
choice. Using a credit card to cover medical expenses can lead to high-interest
debt if you can't afford to pay your balance each month.
A personal loan can also
be a safer choice than a 401(k) loan, which would raid your retirement funds,
or a home equity loan,
which puts your house at risk if you can't keep up with monthly payments.
If you're crushed by
medical debt, consider working with a credit counselor. Bankruptcy may provide
relief if you run out of options. It will damage your credit rating in the
short term, but some medical debt can be discharged under bankruptcy. This could
offer a way out if you’re stuck choosing between your health and your finances.
Survey methodology:
·
U.S. News ran a nationwide survey in October
2020.
·
The survey sample came from the general
American population, and the survey was configured to be representative of this
sample.
·
The survey was screened to include consumers
who said they've struggled to pay a medical bill.
·
The survey asked 10 questions related to
medical debt.
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