Who isn’t aware that medical debt is often devastating? A stunning 41% of American adults have debt related to medical or dental bills according to a recent Kaiser Family Foundation survey. That survey found that 50% of adults could not pay an unexpected $500 medical bill in full. Ouch.
Healthcare systems are now often encouraging patients to sign up for consolidation or payment plans through partner lenders such as CreditCare and AccessOne. While some patient financing plans are truly helpful, other plans may charge high-interest rates or offer complicated repayment terms. Ka-ching for patient finance companies.
Healthcare systems are profiting from patient financing while consumer medical debt is growing. Teaming up with for-profit financing companies can be highly profitable. As reported by NPR, IBISWorld estimates patient healthcare financing profits to top 29%.
One strategy to try to cope with this reality is to expect unexpected medical emergencies and pay yourself first so that your emergency fund is ready and waiting. Another strategy is to simply review your bills carefully. And, another, perhaps not as obvious: ask for discounts. There is no shortage of websites that offer tips on how to do this. Just search “ask your medical provider for a discount.”
We wish you good health in 2023!
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