Latest news with #medicaldebt
CBS News
12 hours ago
- Business
- CBS News
How to qualify for medical debt forgiveness
If you're struggling to pay off your medical bills, debt forgiveness could be an option to pursue. SengMedical debt has become one of the most common and overwhelming forms of debt in the U.S., and for good reason. The rising cost of healthcare has made even the most routine care unaffordable for the average person, and all it takes is a short hospital stay or emergency room visit to end up with medical bills in the thousands or tens of thousands. And, things like high deductibles, surprise billing and out-of-network charges can add up fast, even if you have insurance. But if you don't have insurance at all, the bills can be staggering. What makes medical debt particularly frustrating is that it often feels unavoidable. Unlike a credit card balance or a personal loan, which you might voluntarily take on or use to bridge the gaps in your salary and expenses, medical debt is typically the result of an unexpected illness, accident or necessary treatment. And when you're dealing with a health crisis, figuring out how to pay the bill is usually the last thing on your mind, at least until the debt collectors start calling about your overdue medical bills and it becomes impossible to ignore. That's where medical debt forgiveness can come into play. While full forgiveness isn't guaranteed or always easy to get, there are legitimate ways to reduce or eliminate what you owe. So, if you're hoping to erase some or all of your medical debt, you'll want to know about qualifying for forgiveness — and what to do if that's not an option. Find out how to start the debt relief process today. How to qualify for medical debt forgiveness The first thing to understand is that medical debt forgiveness can take a few different forms. Unlike student loans or tax bills, there's no single federal program that wipes out healthcare-related debt. But there are hospital- and provider-based programs, nonprofit resources and settlement strategies that can lead to partial or full forgiveness. Here's how to approach these options: Start with hospital financial assistance programs. Many nonprofit hospitals are required to offer charity care or income-based relief under the law. So, if your medical debt is tied to a nonprofit hospital and your income falls under a certain threshold you might qualify for full or partial forgiveness. The catch? You usually have to ask. Hospitals don't always publicize these programs, and some require you to apply within a certain timeframe after receiving care. Look into debt settlement as an option. If you don't qualify for assistance through a hospital or charity, negotiating with the billing department or a third-party debt collector can sometimes lead to partial forgiveness. With medical debt, creditors are often more willing to settle for less than the full balance, especially if the debt is old or has been sold to a collection agency. You can negotiate this on your own, or work with a debt relief company that specializes in unsecured debt. Just keep in mind that there may be fees involved, and any settled debt could be taxed as income if the forgiven amount is over $600. Watch your insurance and billing statements carefully. Sometimes what looks like medical debt may actually be the result of incorrect billing or insurance denials. If you see errors, appeal them. Getting a charge corrected or resubmitted to your insurer could make the balance go away entirely and save you the trouble of needing forgiveness in the first place. Chat with a debt relief expert about the options available to you now. What to do if you don't qualify for medical debt forgiveness If you've explored the forgiveness options above and still come up empty, you may still have some options. Taking the steps below, for example, may help you manage your medical debt burden: Set up a payment plan. Most hospitals and clinics will let you pay off your balance in small monthly installments without tacking on much (or any) interest. This isn't medical debt forgiveness, but it can make the debt much easier to handle and prevent it from going to collections. Explore debt settlement more seriously. Settling your debt for less than you owe comes with some downsides, but it can be a realistic way to cut down the balance. So, if you were hesitant to pursue this route due to the tax and fee implications but are out of options, you may want to revisit the possibility of settling your debt. Prioritize the debt correctly. Unlike credit card debt, medical debt generally doesn't accrue interest or late fees in the same way, and newer changes to credit reporting rules mean that paid medical debts no longer appear on your credit report. Use that to your advantage and focus on higher-interest debts first, while staying in communication with the provider to avoid collections. The bottom line Medical debt forgiveness isn't always easy to come by, but it's more accessible than many people realize. From hospital assistance programs to debt settlement, there are real ways to reduce or erase what you owe, especially if you're proactive about asking for help. And even if forgiveness isn't an option, affordable payment plans and strategic debt management can make the load lighter. The most important step is to take action quickly, though, as there's real power in negotiating, asking questions and exploring every available path to relief.
Yahoo
24-05-2025
- Health
- Yahoo
Connecticut expands medical debt relief to 100,000 more residents: Who is eligible
More than 100,000 Connecticut residents will soon receive letters notifying them of medical debt relief, according to a community announcement. Gov. Ned Lamont announced May 21 that the second round of an initiative, launched last year in partnership with the nonprofit Undue Medical Debt, is underway. The program aims to eliminate medical debt for residents who meet specific income criteria. Undue Medical Debt negotiates with hospitals and other providers to eliminate large portfolios of qualifying medical debt. To qualify, residents must have an income at or below four times the federal poverty level or have medical debt that is 5% or more of their income. In this round, the state invested $575,000 of American Rescue Plan Act funding. Undue Medical Debt was able to negotiate with a secondary market partner to acquire and eliminate more than $100 million in qualifying medical debt. The first round, which occurred in December, eliminated approximately $30 million in medical debt for 23,000 residents. Those who have been identified for relief will receive a branded envelope and letter from Undue Medical Debt in the mail over the next several days. (To view a sample of what this letter looks like, click here.) 'Medical debt causes additional anxiety and stress when individuals and families are coping with potentially life-threatening health situations,' Lamont said. 'Over the next few days, more than 100,000 Connecticut residents who have been struggling to pay their medical bills will feel relief when they receive letters in the mail notifying them that their debt has been erased. I am hopeful that additional medical partners will soon sign onto this program to help more Connecticut families through further rounds of this initiative.' Allison Sesso, CEO and president of Undue Medical Debt, expressed gratitude for the state's continued partnership in providing medical debt relief. 'The erasure of these debts of necessity wouldn't be possible without community-minded leaders like Governor Lamont and his team, who believe medical debt should not be a hindrance to seeking needed care,' Sesso said. 'We look forward to continuing our work in the state so families can seek healthcare with dignity.' State Rep. Cristin McCarthy Vahey, co-chair of the legislature's Public Health Committee, also praised the initiative. 'Medical debt can be a crippling burden on patients, especially those who are already struggling to make ends meet,' Vahey said. 'Erasing medical debt for an additional 100,000 residents will greatly ease the stress they are facing and will free them up to focus on their health and well-being. Thank you to Governor Lamont and Undue Medical Debt for their leadership on this innovative program.' There is no application process for this relief, as the debt erasure occurs through the purchase of large, qualifying bundled portfolios of debt from participating partners like hospitals and collection agencies. Lamont plans to continue partnering with Undue Medical Debt for further rounds of medical debt cancellation. The governor and the Connecticut General Assembly have enacted legislation that makes $6.5 million in ARPA funding available for this initiative. This story was created by reporter Beth McDermott, bmcdermott1@ with the assistance of Artificial Intelligence (AI). Journalists were involved in every step of the information gathering, review, editing and publishing process. Learn more at or share your thoughts at with our News Automation and AI team. This article originally appeared on The Bulletin: Is your CT medical debt being erased? Check your mail this week
Fast Company
20-05-2025
- Health
- Fast Company
Health insurance is fundamentally broken. Here's how to fix it from the ground up
It's no secret that when it comes to simplicity and convenience, insurance has lagged behind modern businesses across most industries. While many legacy products have been overturned by newer, intuitive solutions or adapted to meet today's consumers' needs, insurance offerings have remained a complex anomaly—built more for business and regulatory needs rather than real people. We already know that healthcare in America is too expensive, and far too many people simply can't afford to get sick. Health insurance deductibles are at an all-time high, while denied and delayed claims payments persist. Insurance companies have continued making money while a staggering number of people are putting off care because of the cost, or pulling money out of their 401(k) plans early to pay for medical expenses. We also know that there is no shortage of people who are fighting for healthcare policy changes, more accountability around business practices, and broader reform. But consumer patience is running out. And with 100 million American adults in medical debt, incremental regulatory changes won't be quick enough to take on the challenges that so many people face today in affording basic, and sometimes unexpected, costs related to their healthcare. Consumer Sentiment It's time we ask the question: Can we start making progress by rethinking how health insurance products are fundamentally designed? In order to do this, we have to accept some consumer truths about health insurance today. First, more than 50% of Americans don't understand their health insurance. That's because, unlike most other industries that have embraced simplicity and ease, insurance remains complex, filled with exclusions, jargon, and unnecessary paperwork. So even with the best of educational tools, we're looking at a large literacy gap. Second, consumer animosity toward health insurance companies is almost as old as the business itself. Even traditional supplemental health insurance offerings like Accident Insurance and Critical Illness that are intended to provide extra support were not designed to cover very much. And the amount of money that goes back to the insured at the end of the day is low for every dollar of premium paid. So it's not surprising that people are tired of frequent claim denials and delays, and don't trust that their coverage will minimize their out-of-pocket exposure as much as they need it to. It's obvious that we have to start with addressing what's covered, and how we pay claims, which is core to any insurance product. We can't just slap technology onto insufficient coverage and hope that it'll improve consumer confidence and trust. But there are some things we can do today to help health insurance catch up with other consumer industries through human-centered design. Here are three: 1. We can set up insurance products like subscriptions Digital simplification across industries has been happening since the dawn of Amazon and Uber, and has taught consumers to have certain expectations around their apps and online experiences. Just for the purposes of this exercise, let's think about insurance in terms of the direct-to-consumer fulfillment model—and treat insurance like a subscription where care is the purchase and benefits are refunds. Thinking of benefits as refunds enables us to align insurance innovation with the digital simplicity today's consumers expect. By removing the complexity wrapped around benefits, we can make claims intuitive and the delivery of benefits seamless. We have to eliminate the common limitations and restrictions as well as the excessive paperwork and evidence required for claim approval to enable quicker benefit decisions. People should be able to track the status of their claim in real time, so they can stop chasing their insurance companies for answers. Payment should be electronic, and take days, not weeks. In doing this, we can start to replicate the standards of efficiency and transparency people today are accustomed to when they buy and return products, and build a modern insurance experience that meets digital consumers' expectations and needs. Treating health coverage like a subscription also provides clear opportunities for engagement. And insurance companies across sectors are just starting to take note. Beam Technologies tracks teeth-brushing habits through a Wi-Fi-connected toothbrush to tailor dental insurance discounts, while Discovery offers its Vitality Program that rewards customers with points for preventative checkups. By encouraging consumers to engage with their coverage, motivating them to use it by offering rewards and discounts like other consumer businesses, these companies drive utilization and deliver value as a result. 2. We can take an (active) back seat Another school of thought tells us that the best insurance companies are the ones that people don't think about at all. Unlike the previous approach, which assumes consumers will use their coverage like they do their subscriptions, this strategy doesn't expect that the modern consumer wants to interact with their insurance company at all. Instead, it offers a simple promise of value without any participation required. This approach provides obvious opportunities for leveraging data and automation to set up a product experience where the claim end-to-end is managed by the health insurance company, with no necessary intervention from the insured at all. Innovators in the space are just getting started automating several, if not all, aspects of the claims process. Current players like ClaimsMinder, Human API, and Claritev are just beginning to unlock the power of data to streamline the notification, filing, processing, and payment of a claim so that employees can get more out of their benefits. Ansel Health offers 'medical claims integration,' which enables them to determine when individuals have a covered condition and are eligible for a benefit, and pays them directly without requiring them to ever file a claim. In doing this, we eliminate coverage disputes, delayed claims payments, or even just make someone's day a little bit easier—and maybe then begin to build some trust. 3. We can become a logical extension of the modern care-delivery revolution When people get sick, they don't see their preventative care or treatment and their health insurance as two separate entities, but rather one experience. Unlike insurance, modern care delivery has evolved at a rapid pace over the past 25 years. Digital and in-person clinics like Wally, Maven, Tia, Omada, Parsley, and One Medical are setting new standards for the way people experience care, and even legacy care providers are mimicking their practices with apps and more. Notably, most of these providers have chosen to offer subscription-based or up-front payment models and to 'cut out the insurance middleman.' Why? Because it just doesn't align with their promise of simplicity and empathy through the provider experience. By applying human-centered design, we can bridge this gap—creating insurance brands that look and feel like a natural extension of the modern care delivery experience. Companies like Oscar, Rightway, and Sana are already proving this is possible, offering an integrated experience that resonates with today's consumers. It's a fair question to ask, but why will business stakeholders care? A part of it will be about finding a set of believers and innovators who are both mission-aligned and consumer-focused. But it's also important to acknowledge that fixing the flaws in the health insurance experience doesn't just address the financial crisis around healthcare, it aligns with business needs too. In fact, there's a clear business case for creating simpler health insurance products. According to the Integrated Benefits Institute, serious illnesses, when not treated, result in an average of 1.5 billion lost work days per year, costing employers $575 billion annually. When employees don't delay or skip care because they're confident in their health coverage, they're less likely to require sick time, workers' compensation, disability, or family and medical leave. Employers see higher retention, insurance brokers and agencies build deeper trust with their clients, and insurance companies see a higher rate of renewals. Established companies can participate too through partnerships with modern solutions, allowing them to stay competitive in an evolving marketplace, benefiting new, innovative players seeking broader distribution. Our goal is simple: In 10 years' time, we want people to be talking about how complex health insurance used to be, and finally build some real trust.
Yahoo
18-05-2025
- Health
- Yahoo
Get a Surprise Medical Bill You Can't Pay? 6 Resources That Can Help
Did you receive a surprise medical bill? If so, you're not alone. According to KFF, Americans owe an estimated $220 billion in medical debt, which can be seriously detrimental to their overall finances. Read Next: Check Out: If you find yourself with a surprise medical bill, you have options. Here are some top resources to help you pay your medical bills. The No Surprises Act of 2022 limits how much you have to pay for out-of-network providers or facilities. It is defined to ensure you're paying closer to what you'd pay if you'd received services in your network, according to the Consumer Financial Protection Bureau. If you're uninsured or self-pay for insurance, you should get a 'good faith' estimate when you first schedule care with your provider. If the amount you're billed is $400 higher than the estimate showed, you may be able to dispute it. To do so, contact the No Surprises help desk or file a complaint online. Learn More: The government has quite a few programs that can help you pay your medical bills. These include Medicare, Medicaid and the Children's Health Insurance Program. Eligibility mostly depends on your income, but it never hurts to research your options. If you're dealing with a hefty medical bill that your insurance doesn't cover, these options from could help: Medicare Savings Programs that help with Medicare Parts A and B Medicare Extra Help for help with prescription drug costs Local or state charity care programs that can offset the cost of medical treatment State social service agency that can give you referrals to better or more affordable healthcare. Did you know you might be able to get on a payment plan rather than pay the entire bill at once? 'Most providers will allow you to spread the balance over time, often interest-free so don't be afraid to ask about this,' said Linda Jensen, a chartered financial consultant, chartered life underwriter and certified financial fiduciary with Heart Financial Group. 'Make sure you can afford the monthly amount, defaulting on a medical payment plan can hurt your credit if the debt is turned over to a collection agency.' When you get an unexpected medical bill, one of the first things you should do is review it to make sure you're getting billed only for treatment or services you actually received. After all, billing errors can happen. You can request an itemized bill. Once you have that, cross-reference it with your insurance plan's explanation of benefits to make sure everything looks in order. If it doesn't, reach out to your provider and find out what's going on. Know that you might be able to lower how much you owe even if the amount is correct. According to Jensen, you may be able to get one of the following: Discount for prompt payment (best for those who have the cash on hand) Cash rate rather than the billed rate Balance reduction or forgiveness (best for those experiencing legitimate financial hardship). 'Always get any agreement in writing before making payments,' Jensen said. By law, nonprofit hospitals must offer a financial assistance policy (FAP), per the IRS. Reach out to the hospital where you received treatment and request a financial assistance application. You may be required to submit documents verifying your income or financial hardship. Eligibility for these programs depends on factors like income, financial hardship and household size. In some cases, the hospital will offer financial assistance even after you've received a bill — so long as you qualify. Certain nonprofits, like the Patient Advocate Foundation, exist to help people with their healthcare and medical bills. If you receive a surprise bill, consider contacting one of these organizations to see if they can help. The Patient Advocate Foundation, for example, has an independent division that provides grants to patients who meet medical and financial criteria. More From GOBankingRates 5 Luxury Cars That Will Have Massive Price Drops in Spring 2025 8 Items To Stock Up on Now in Case of Tariff-Induced Product Shortages 8 Common Mistakes Retirees Make With Their Social Security Checks 10 Genius Things Warren Buffett Says To Do With Your Money Sources KFF, 'What resources are available for privately insured patients who get surprise balance bills?' Consumer Financial Protection Bureau, 'What is a 'surprise medical bill' and what should I know about the No Surprises Act?' 'How to get help with medical bills.' Linda Jensen, Heart Financial Group IRS, 'Financial assistance policy and emergency medical care policy – Section 501(r)(4).' Patient Advocate Foundation, 'Financial Aid Funds.' This article originally appeared on Get a Surprise Medical Bill You Can't Pay? 6 Resources That Can Help Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-05-2025
- Health
- Yahoo
Get a Surprise Medical Bill You Can't Pay? 6 Resources That Can Help
Did you receive a surprise medical bill? If so, you're not alone. According to KFF, Americans owe an estimated $220 billion in medical debt, which can be seriously detrimental to their overall finances. Read Next: Check Out: If you find yourself with a surprise medical bill, you have options. Here are some top resources to help you pay your medical bills. The No Surprises Act of 2022 limits how much you have to pay for out-of-network providers or facilities. It is defined to ensure you're paying closer to what you'd pay if you'd received services in your network, according to the Consumer Financial Protection Bureau. If you're uninsured or self-pay for insurance, you should get a 'good faith' estimate when you first schedule care with your provider. If the amount you're billed is $400 higher than the estimate showed, you may be able to dispute it. To do so, contact the No Surprises help desk or file a complaint online. Learn More: The government has quite a few programs that can help you pay your medical bills. These include Medicare, Medicaid and the Children's Health Insurance Program. Eligibility mostly depends on your income, but it never hurts to research your options. If you're dealing with a hefty medical bill that your insurance doesn't cover, these options from could help: Medicare Savings Programs that help with Medicare Parts A and B Medicare Extra Help for help with prescription drug costs Local or state charity care programs that can offset the cost of medical treatment State social service agency that can give you referrals to better or more affordable healthcare. Did you know you might be able to get on a payment plan rather than pay the entire bill at once? 'Most providers will allow you to spread the balance over time, often interest-free so don't be afraid to ask about this,' said Linda Jensen, a chartered financial consultant, chartered life underwriter and certified financial fiduciary with Heart Financial Group. 'Make sure you can afford the monthly amount, defaulting on a medical payment plan can hurt your credit if the debt is turned over to a collection agency.' When you get an unexpected medical bill, one of the first things you should do is review it to make sure you're getting billed only for treatment or services you actually received. After all, billing errors can happen. You can request an itemized bill. Once you have that, cross-reference it with your insurance plan's explanation of benefits to make sure everything looks in order. If it doesn't, reach out to your provider and find out what's going on. Know that you might be able to lower how much you owe even if the amount is correct. According to Jensen, you may be able to get one of the following: Discount for prompt payment (best for those who have the cash on hand) Cash rate rather than the billed rate Balance reduction or forgiveness (best for those experiencing legitimate financial hardship). 'Always get any agreement in writing before making payments,' Jensen said. By law, nonprofit hospitals must offer a financial assistance policy (FAP), per the IRS. Reach out to the hospital where you received treatment and request a financial assistance application. You may be required to submit documents verifying your income or financial hardship. Eligibility for these programs depends on factors like income, financial hardship and household size. In some cases, the hospital will offer financial assistance even after you've received a bill — so long as you qualify. Certain nonprofits, like the Patient Advocate Foundation, exist to help people with their healthcare and medical bills. If you receive a surprise bill, consider contacting one of these organizations to see if they can help. The Patient Advocate Foundation, for example, has an independent division that provides grants to patients who meet medical and financial criteria. More From GOBankingRates 5 Luxury Cars That Will Have Massive Price Drops in Spring 2025 8 Items To Stock Up on Now in Case of Tariff-Induced Product Shortages 8 Common Mistakes Retirees Make With Their Social Security Checks 10 Genius Things Warren Buffett Says To Do With Your Money Sources KFF, 'What resources are available for privately insured patients who get surprise balance bills?' Consumer Financial Protection Bureau, 'What is a 'surprise medical bill' and what should I know about the No Surprises Act?' 'How to get help with medical bills.' Linda Jensen, Heart Financial Group IRS, 'Financial assistance policy and emergency medical care policy – Section 501(r)(4).' Patient Advocate Foundation, 'Financial Aid Funds.' This article originally appeared on Get a Surprise Medical Bill You Can't Pay? 6 Resources That Can Help
