Any advice on dealing with large medical bills for a poor person?

[Bradical79]

I've gotten medical bills totaling about $12,000-$13,000 but only make $8,000/year on average. In addition, I've got $about $10,000 from old credit card debt (mostly school and medical related). While I am finally getting around 40/hours a week at work this past month, it's not every week and is basically dependent on my begging managers for more hours on a weekly basis. So I could drop back down to lower pay at any moment. Unfortunately my part timer health insurance tops out at only $1,000 of payments each year (and I pay around $850 per year for insurance). Even though my insurance doesn't meet the minimum dollar requirements set by the ACA, they've received a waiver from the U.S. Dept. of Health and Human Services until July 31, 2013 (just got the letter today).

Oh, and I have $20,000 in additional student loans to pay too :-P

Anyway, anyone have any advice to keep me out of debtors prison?

I currently live with my parents to stay off the streets, and don't own a car so there's not much for me to sell (or have taken from me). I have some advanced math skills and programming ability, but no-one seems to want someone without a college degree. My medical issue caused a sharp drop in my GPA and led to me getting booted from school. And sense I was diagnosed after getting kicked out, and the school doesn't believe in retroactively changing old decisions, I'm pretty much screwed for the time being until I can afford to build a good academic resume at community college again.

Also, my medical bills are mostly from a specialist I had to see for severe sleep apnea rather than a hospital.

[Drale]

1. Well I don't know the story about your medical problems but

I would suggest finding a higher paying job even if its just full time at a grocery story or something. I used to work part time (20 to 30 hours a week) at a grocery store making 8.00 a hour and make 6k a year so thats 12 if I worked full time and full time workers at the store made more then part time (not fair I know but thats just how it worked). Other then that I don't know.

[Atman]

2. CALL YOUR CREDITORS! Now, sooner than later.

Many will work out terms, accept smaller amounts, or even eliminate the debt entirely. Even if you pay just $10 a week, pay SOMETHING so they can't say you're a deadbeat.

My wife is in a practice, and she tells it like it is...they'd much rather hear from you and work something out than to deal with a collection agency who will just take half of it anyway. Some might be harder than others, but virtually all of them should be willing to reach a payment arrangement with you. And it will help keep you out of the debt collector's files.

[pnwmom]

3. Or better yet, write.

I know a woman who wrote a letter to a hospital, and detailed her financial situation, and they ended up waiving her whole bill. I'm pretty sure she hand-wrote it, because I know she didn't have a computer.

It's worth a shot.

[Atman]

8. That works, too! Worked for us back in the 80's.

When our boys were little, one of them fell off a swing set and ripped open his leg on an exposed bolt. Neighbors called an ambulance, because it was cut to the bone. At the time, wife was still in school, I was barely eeking out a living as a graphic designer...we had, like, no money. Then the ambulance bill showed up...$800. I called them and explained our situation. A couple of quick questions later, they forgave the entire bill. It's worth a shot.

Ironically, this is why Republicans hate Obamacare...they'd rather you have to beg and plead for the rest of America to pick up the tab for your emergency care, rather than to just have a fair system into which everyone pays and everyone is covered. No, it's all about haggling and making deals to them. If you can't haggle, you don't deserve a good price (or good care).

.

[Bradical79]

13. Thanks! I'll do both

[cbayer]

4. Have you looked into Medicaid?

There is probably someone in the doctor's office who could help you with this.

One question - why would you pay $850 a year for a policy with a max benefit of $1000 a year? That doesn't make sense to me. Also, I have never heard of a policy with such a low yearly maximum.

[DJ13]

7. ^^ This

The hospital usually has staff on duty to push through your case for Medicare with the state.

[Bradical79]

10. Technically, the maximum is $5,000.

But the outpatient services maximum is $1,000 which is what everything I've needed done this past year has been classified under. I don't know what counts as what, so I'll have to read and make calls to get clarification.

[cbayer]

12. Well, that's some really bad insurance you have there.

[Bradical79]

14. Yeah... it's part timer insurance from a major home improvement retailer

[kestrel91316]

17. If it's any consolation, come Jan 2014 nobody in the US will be allowed to offer

a policy THAT crappy.

[cbayer]

18. That is absolutely right.

The fact that they sell this at all is pretty outrageous.

For $850/year he should at least get preventative and catastrophic, which is what the ACA will require (oh, and no lifetime max).

[wendylaroux]

5. yes,talk to hospital

several lows income people in my town have had their bills either reduced or entirely erased. Some hospitals have a income based fee. Good luck!!

[pnwmom]

6. I'm glad they diagnosed the apnea, at least. Better than have it go for decades,

as it does for many people.

My son was lucky to get diagnosed, because he doesn't appear to have any risk factors (tall, thin). But he couldn't focus during the day and was always tired -- and his father had apnea. So his doctor had him tested. Now he uses a cpap machine every night and it's made a huge difference.

Do neither of your parents have insurance that could cover you?

[Bradical79]

9. I'm 32, so no insurance from my parents

They're not doing too well themselves either. Could lose the condo within the year.

Yeah, I prefer the massive debt to having to deal with sleep apnea. They've got me on the bipap machine which has helped a lot. I wish I'd gotten the treatment much earlier. Probably wouldn't have had quite a big financial mess if I'd had my wits about me. I got used to the machine and finally started sleeping through the night this week. Took a look at my finances and had kind of an "oh shit, what have I done!" moment :-P

[pnwmom]

11. You're still pretty young to have that diagnosis.

I'm so glad my son got his diagnosis now, instead of a couple decades from now. It's already made such a difference.

[Bradical79]

16. Yeah, I'm glad

I was getting to be pretty worthless at my job and in school, was having major joint problems, not recovering from minor pulls and sprains, and was on the verge of having non-alcoholic kidney cirrhosis, hypertension, and dangerously high blood sugar. It's amazing how important decent sleep is to ones health. I'd never thought about it much before. And as someone who looked young and healthy, I didn't get much sympathy or understanding from others :-P It took me forever to get an actual diagnosis too. Was checked for arthritis, lime disease, and various autoimmune diseases including Lupus.

[pnwmom]

20. And you were probably starting to feel

like a hypochondriac, telling people you were always tired. What a nightmare. I'm so glad you finally found an answer.

[Warpy]

15. Unfortunately, Medicaid won't help unless you're destitute

and you're actually earning money, so you're pretty much screwed there.

Your best bet is to set up a payment plan based on your current income. As long as you don't miss a payment, you'll keep them off your back. Once you do that, you'll be able to concentrate on rebuilding your academic life by presenting medical evidence to the school and hinting at a lawsuit if they don't reverse their earlier decision and readmit you to repeat the course work your medical condition caused you to fail.

As time plods on and you get out of school, you should be able to dispose of that debt fairly easily. Until then, it's going to be a treadmill of payments you can barely afford and privation because of them and this is why anyone with a brain votes Democratic and hopes for single payer health insurance.

[Bradical79]

19. When I think about it I'm pretty lucky

I've at least got the brains and I got an actual diagnosis and treatment that works, so eventually I can work my way back on top assuming my luck holds out. I also think I'm going to start blogging to help promote progressive plans like universal health care. I know there are others out there that get stuck in medical bill hell without the skills to make money or conditions that pretty much make it impossible to find meaningful employment.

[bemildred]

21. Pay as much as you can with your credit cards and then go bankrupt. nt

[Atman]

22. There is no "bankrupt" anymore. That is only for the rich and corporations.

Real people get shuffled into life-long servitude to the corporate debt collectors. You can't write off assets, as corporations can, you can't do shit. You can only accept the terms the banks and debt collectors offer you...and have your wages garnished until you die.

[2pooped2pop]

23. I'm not sure that you make enough money for them to garnish

There is a garnishment calculator somewhere on the net that will tell you how much they can take if any. If they can't garnish, I would contact them and try to work out some very minimal attempt to pay to keep them at bay. I would then take whatever money you were hoping to make payments with and start paying on a bankruptcy attorney. Some will take $25.00 payments.

Find a clinic for future medical needs. My kids went to one in Marion Indiana for $19.00. It's limited but better than nothing.

Your doctor will probably settle for half if you ever find yourself in that situation.

Show up to any court cases. It;s the failure to show that they get you on. Just because the judge says you have to pay doesn't really mean anything if you don't have the money.

Find out if you can be garnished or not. If not, mellow out. You will most likely never be able to pay it. 13 grand at 100.00 a month would take almost 13 years to pay without interest.

If you have already filed a bankruptcy, just pay a minimum of 10 bucks a month to them until you are eligible to file again.

It is unlikely that you can get medicaid.

You didn't get help thinking you would not pay. It is the way the rich have set up the world for us that makes you unable to pay. Let yourself off the hook and file bankruptcy when you can. It's not your fault.

[Sgent]

24. A couple of suggestions

Apply for Medicaid -- through the hospital social worker. In many states you will not be eligible, but often times the hospital can get you on Medicaid short term if you were hospitalized.

Consider applying for real insurance at http://www.healthcare.gov/. It will direct you to your state options.

I would try to work with the hospital / credit card people if you can, especially if you can get forgiveness.

But, depending on when you think you might realistically be able to return to full work / full employment, I might consider another tactic. Default on the non student loan bills -- don't even talk to them after the above negotiations. Depending on the state, they will probably be wiped out in 2-3 years by the statue of limitations unless they sue. If they start sending collection agents after you, write the an FDCPA letter and tell them to cease contact. This WILL ruin your credit.

If they sue you (which does stop the statue of limitations), then you may have to deal with it (or maybe not). First they have to win the lawsuit, then they can try to garnish / cease assets -- but depending on the state this might not be possible. Worst case you may have to file bankruptcy.

One other suggestion, look into a student loan hardship deferral / disability loan forgiveness if that will help.

[Bradical79]

25. Update :-)

After reading the advice here, I chilled out and started making phone calls and filling out forms. Got my medical bill reduced to about $1,200. Much more manageable Thanks Democrat peeps! Also, a better off family member will help pay for some schooling at community college so I can keep going part time. In the meantime I'm going to work on a software development portfolio so that I can try getting a better job (or freelance work) before I have a degree.

[INdemo]

26. Apply for medicaid

It appears you would qualify and Medicaid will pay medical bills retroactive

[RockyMtnGuy]

27. Call the hospital - ask for the social services department

Every hospital (for profit or not-for-profit) has this type of staff/team. They are skilled in helping you find resources or govt agencies and they will also help you work with the billing office to negotiate or write off your bill.