What is the best and easiest way to pay off medical debt in one lump sum?

Question

Hi. I am about $3,000 in medical debt from emergency room visits about three years ago. Other than that I have excellent utility payment history and zero consumer debt, never even so much as bounced a check, yet I have "poor" credit as a result of the med debt. People try and tell me that med debt does not affect your credit, but obviously they are wrong as I have seen my score myself recently and am declined for anything credit-based I apply for, including certain jobs.

I am in college and have decided to use some of my loans to pay the debt in a lump sum and get it out of my life for good. I just want to be a member of this increasingly credit-based society again and stop getting doors closed in my face due to medical debt.

My question is: What steps do I take to pay this lump sum? Should I go to a service or can I just call someone and make a payment? Is it true that by paying it off at once I can negotiate a lower total amount?

Answer 1

I agree with those that posted saying to pay the original medical provider.

Medical debt is different than other types of debts in that you have protection under HIPAA and your states medical privacy laws.

By paying the original medical provider, the full amount owed, they are required to recall the account from any collector they have placed it with and demand the collector delete everything concerning the debt from their files and from your credit report.

But, you have to take care that you don't inadvertently waive those rights.  Paying or making payment arrangements with the collector, not paying the original medical provider in full for a debt that is correct and is yours, etc., may result in your rights being waived.

Use a bank cashiers check or bank money order that is made out to the original medical provider. In the memo section put "For Deposit Only to the Account of (med. providers name)"

Deal with the medical providers HIPAA Compliance Office.

You might click on my profile and click on the last link I have listed to a free credit discussion board. Do some reading in the Newbie Section first, then read in the Medical Forum.

You will be able to learn more on your HIPAA rights and how to use them. You will also find a sample letter template that you can use along with your payment (the letter is also free to use).

After that, you should do some reading in the Credit Forum about building/rebuilding your credit. (all of which is free to read and ask questions)

Answer 2

Do it yourself and save the money.

You need to contact the company who owns the debt and negotiate a pay for deletion agreement. If you don't, then you'll end up paying the debt and having bad credit.

You can try to get them to settle for less than is owed, but you may run into trouble getting them to agree to deletion. You might also get 1099'ed for the remaining balance.

Answer 3

Contact the hospital, and arrange for a payment plan. The hospital is happy to be paid, and will gladly set up the payment schedule.  It can be a lump sum, or a monthly payment plan.  Both of these payment schedules  will help improve your credit.

Answer 4

Hi,

I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:

http://is.gd/7il

Answer 5

call and pay with a credit card and pay the bill quick

this will get them off your back

Answer 6

There are medical bills consolidation program out there you can take help off if you are not able to manage your debts. One of the way is take a bill consolidation loan.

Another is bills consolidation plan wherein your debt consolidator would first analyze the amount of medical debt and then prepare a payment plan and discuss with creditors to lower the interest rate. The reduction of average interest rate is on the total medical debt. Late fees, penalties and taxes are also discussed in the payment plan. The revised consolidated medical debt is then divided into easy monthly installments.

The advantages of a consolidating your medical bills is you would have to pay only one medical bill against all the medical bill debts each month, plus it eliminates the past interest and penalty and also helps to keep current on medical bills.

Thus it would be better if you go through a consolidation program as they are experts of that field and they could guide you in a better way.

Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference.