What Are the Different Types of Medical Debt Relief?

Geri Terzo

When an individual cannot honor medical debts, the financial strain could make an already difficult situation more precarious. There are forms of medical debt relief, however, that can appease both creditors and debtors. It might require the hiring of an outside firm to negotiate better terms for medical bills or to consolidate healthcare debts into one monthly payment. Under certain conditions, it might be possible to see a debt forgiven completely or partially because of especially unfortunate circumstances.

Medical debt forgiveness may occur if a person can prove financial hardship.
Medical debt forgiveness may occur if a person can prove financial hardship.

There are debt counseling and consolidation service firms that can help provide medical debt relief. These financial representatives might attempt to negotiate lower balances on behalf of clients. Other potential cost savings might be reaped from the cessation of late fees in the event that some previous payment plan was established but was violated by the borrower. Medical debt relief could be obtained through counselors and debt consolidators, whether the financial obligation is to a physician's office, a hospital or a credit card that is designated for healthcare expenses, for instance.

Having medical debt may limit someone's access to health care.
Having medical debt may limit someone's access to health care.

Debt negotiation can be used as a tool for individuals to avoid filing for bankruptcy. In the event that medical bills are too numerous and the balances too high to manage, financial professionals might be able to reduce the total balance and avoid more extreme measures by the patient. For instance, negotiation might be a more sensible option than filing for personal bankruptcy. There are different ways that patients can get into unwanted debt situations, and one risky practice involves attempting to use equity in a home as collateral for medical financing.

Medical debt forgiveness would most certainly introduce some relief into an individual's financial condition. To be considered for this type of medical debt relief, an individual might need to prove financial hardship and the most likely candidates to receive this might have little or no access to health insurance. It might be the responsibility of the debtor to contact the creditor and place a request for medical debt relief in the form of forgiveness for bills. Although the entire bill might not be remitted, communication could lead to partial debt forgiveness.

It might be possible to obtain some medical debt relief from a government. When filing for annual taxes, healthcare costs might be eligible to be used as a tax deduction, which might lead to some reimbursement even after bills are paid. To qualify, the medical expenses might need to be at least a certain amount based on the filer's income, and the deduction might similarly apply for a filer's dependents.

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