Medical debt is uniquely addressable among financial obligations. Here is what your options actually are.
Medical Debt Is Different
Medical debt differs from other financial obligations in several important ways that create relief opportunities. Hospitals and healthcare providers are typically nonprofit organizations with legal obligations to provide financial assistance to qualifying patients. Medical debt is negotiated routinely — providers routinely accept reduced settlements and establish extended payment arrangements. And recent regulatory changes have reduced the impact of medical debt on credit scores for many people.
Hospital Financial Assistance Programs
All nonprofit hospitals (and many for-profit hospitals) are required to have financial assistance programs. These programs — sometimes called charity care — can provide substantial bill reduction or complete forgiveness for income-qualifying patients. Income thresholds vary by institution, but many programs extend into middle-income levels for large bills. To access this assistance, contact the hospital’s billing or financial assistance department and ask specifically about financial assistance programs. Request an application and submit it before making any payment or entering a payment arrangement.
Prescription Assistance
Prescription costs create ongoing financial pressure for many households. Patient assistance programs from pharmaceutical manufacturers provide free or reduced-cost medications to qualifying patients — programs are searchable at NeedyMeds.org and RxAssist.org. GoodRx provides comparison pricing at pharmacies that often significantly reduces out-of-pocket prescription costs. Generic equivalents, when available, typically cost 70 to 90 percent less than brand-name medications.
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