Everyone knows that unpaid medical bills cause a major financial struggle and millions of bankruptcies a year. If you have a medical debt, or believe you were overcharged, it is common, and there are many different options to pursue. Your options are much stronger when you can pay (even small payments), but if you can't, that doesn't mean you're bankrupt. One thing is for sure, being proactive and learning what your options are is a step in the right direction and a way to cut your bills.

Options if you can pay:

1. Pay full or larger payments but pay less: Many doctors, medical clinics, and hospitals offer large percentage discounts (sometimes a 10-30% reduction) if you can pay in full or a small number of large payments. Incentives help your healthcare provider keep your accounts receivable low (what people owe you) and increase your chances of getting paid. However, be sure not to jump in and do it right away, as you may be able to negotiate the full amount made if some charges and fees are wrong or unreasonable.

2. Debt negotiation services specifically for medical bills: If you work within the industry, then you know what the reasonable charges are for certain medical procedures and how insurance companies work. If you don't, like most of us, you will have to research this information and learn how to negotiate. Therefore, to ensure you save the most money and time, some companies offer a review and negotiation of medical bills on your behalf. They are more successful and get big reductions because they know the industry. Be sure to work with companies based on risk or contingency rates because there is no percentage of the savings rate if you do not save (therefore it is a mutual benefit).

3. Consolidate your medical debt with a loan: this is not always the best option, it should always come after steps 1 or 2 above. If you have medical debt and don't have a repayment plan, a loan allows you to pay off the medical debt right away. However, you end up paying more in the long run due to interest. A personal loan is generally more difficult to obtain than a home equity loan or refinance; But if you can't make a house payment, you put your house in jeopardy. This is a last resort option and should be used only if you can get a lower interest rate than your current one (5% at least better).

Options if you can't pay:

1. Contact government-funded organizations: Medicaid is a government program you may qualify to help with medical bills and is designed by your state. There are many factors for eligibility, and they generally help reduce future medical bills rather than covering them before coverage. Medicaid is covered for patients with reasonable income as long as their bills are high, too. Each state must have a website to obtain information. Also, if you have children, each state has a SCHIP or a state children's health insurance plan for which your child may be eligible. https://www.renycompany.com/

2. Contact financial aid or charities - many hospitals and medical clinics are not for profit. In order for them to maintain that status, they have to provide a certain number of services for free. Therefore, many hospitals and clinics offer financial aid that you must qualify for (based on your income, savings, etc.). Additionally, many charities are available outside of the medical center that can provide assistance in many cases.

Consequently, if you can make minimum payments, then you are in a better set of options than if you cannot pay at all. Negotiating medical debt is the most effective and timely option, but it is not exclusive. Unfortunately, this type of negotiation requires a lot of research that leads you to work with a debt reduction company. However, make sure that your debt expert or company specializes in medical debt and operates on a contingency basis.

Author's Bio: 

Contact financial aid or charities - many hospitals and medical clinics are not for profit.