Quick Facts & Tips:
- 1 in 6 Americans had medical debt in collection as of June 2020, reports Robert Wood Johnson Foundation
- Consumer credit card debts and medical debts are quite different. While credit card debts are usually caused by irresponsible behaviors on the part of the consumer, Medical debt can happen to the most responsible individuals, usually with insurance, for no fault of theirs.
- Medical bills are negotiable. Most medical bills have a lot of errors. It’s always a good practice to review and negotiate. Many times the bills could be reduced quite a bit after negotiations and payment plan
- It is not always a good idea to put big medical bills on credit card. Better to be on a monthly payment plan than carry huge interest accruing balance on credit cards.
Houston, TX Medical Debt Tops $97.3M
The cost of health care can be high for patients and their families. For many, medical debt can become a huge burden. High deductibles, copays and other cost sharing, and uninsured patients all contribute to higher rates of medical debt.
According to a study done by the Robert Wood Johnson Foundation, medical debt is the leading cause of debt among U.S. individuals age 18 and over. In Houston, Texas, medical debt is a serious issue as well. The city has a higher than average prevalence of medical debt.
In fact, a 2015 study from the Houston Community Foundation found that the Houstonians carry over $97.3 million in medical debt. Of the total, the study found that about $40 million was related to unpaid medical bills.
Meridian Springs ends over $672k of Medical Debt in Houston
Medical debt crisis was about to get worse in 2020 with COVID disrupting businesses across Houston, just as it did around the world. As we contemplated on the best charitable giving option for us during December 2020, we felt the most effective one would be to abolish medical debt to the extent we could in the Houston area.
We had known about RIP Medical Debt, an organization that was spearheading a solution to the medical debt crisis. Their solution provided a very innovative way to pay off collection agencies pennies on dollar to buy and then gift freedom to local families under the burde of medical debt. We were able to raise enough money to payoff $672,000 medical debt to free 389 Houstonian families from debt burden.
Medical Debt Best Pratices
It is important to note that medical debt does not always translate into non-payment. Some consumers are able to pay their medical bills but cannot afford, for example, a deductible. No matter the reason behind the medical debt, it is best to take action as soon as possible to lessen the chances of becoming overwhelmed with personal finance issues.
The first step when dealing with medical debt is determining your options. Some common solutions include:
- Negotiation: Reach out and negotiate with your provider. Keep in mind that this strategy may not work if the amount of debt is small or if you owe a large amount of money to multiple providers.
- Refinancing: Consider refinancing your debts through a credit union or bank, which could come with lower interest rates and can be easier than paying higher deductible rates at a provider
Conclusion
Medical debt is a big problem in the US, especially in Houston. Houston, TX is one of the most populous cities in the US and the most populous in Texas. When it comes to medical debt, Houston has some of the highest rates of unpaid bills in the country, with unpaid medical bills totaling $97.3 million. Houston has a population of 2.3 million people, with about 20% being uninsured.
As a result, there are lots of people who are struggling to pay their medical bills. Hospitals in Houston spend over $1 billion annually on bad debt, which is more than any other city in Texas. The best way to avoid these problems is by finding ways to pay for your medical bills before they become too large and end up on your credit report.
One way to do this is by setting up a payment plan with your healthcare provider before you undergo treatment. If you don’t have insurance, you can still find ways to get help. For example, there are some organizations that can help you with hospital and doctor bills if you have little or no income or have a disability or chronic condition.
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About us:
Meridian Springs Primary Care, established in 2017, is a direct primary care clinic serving patients in The Woodlands, Houston and surrounding areas of Texas. Dr. Bhavana Rao, founder physician, has not only taken the Hippocratic Oath to Do No Harm, she extends it in her practice to Do No Financial Harm as well.