My son had to stay at the children’s hospital for 2 nights because of pneumonia, and now I’m left with this huge bill of almost $8,000 despite having insurance. I found out that I don’t qualify for financial aid, which is frustrating. I’ve tried asking to pay less than $165 each month, but they insist that’s the minimum, or my account will go into collections. I don’t get why they can’t just take a smaller amount monthly. I thought hospitals are supposed to help, not send people to collections. I’m expecting a call from a supervisor tomorrow, but I feel completely lost about what steps to take next.
Yes, they can do that. There’s a common myth that hospitals have to accept any payment, but that’s not true. They get to set their own rules for payments and collections.
Gale said:
Yes, they can do that. There’s a common myth that hospitals have to accept any payment, but that’s not true. They get to set their own rules for payments and collections.
I wish people would stop spreading this idea. It happens way too often.
Gale said:
Yes, they can do that. There’s a common myth that hospitals have to accept any payment, but that’s not true. They get to set their own rules for payments and collections.
They used to accept smaller payments a long time ago, but things have changed. Now you might need to show financial hardship if you want to negotiate.
They can enforce repayment amounts as they see fit. One option is to open a 0% credit card to pay it off and then transfer the balance later.
Gale said:
Yes, they can do that. There’s a common myth that hospitals have to accept any payment, but that’s not true. They get to set their own rules for payments and collections.
What happens if the person can’t pay? It just ends up in collections. Then what? How do they expect to collect from someone with no income?
Healthcare debt shouldn’t hit your credit negatively, so they’d be smart to take lower payments instead of risking going through collections. You could look into this law and show it to them if you can.
@Gale
More hospitals are starting to pursue legal collection for debts. In some states, they could even place a lien on your house.
@Gale
I was just being rhetorical, but it does suck that they won’t just accept a lower payment when they turn around and sell the debt.
Lennon said:
@Gale
I was just being rhetorical, but it does suck that they won’t just accept a lower payment when they turn around and sell the debt.
Probably because they believe they can earn more selling the debt rather than managing low monthly payments. There can be benefits for their accounting, too. And since they have insurance involved, options for charity are often legal hurdles.
Lennon said:
@Gale
I was just being rhetorical, but it does suck that they won’t just accept a lower payment when they turn around and sell the debt.
I agree, this shouldn’t be something OP has to deal with while caring for a sick child.
That sounds about right. They had me on a similar payment plan for a $6k balance. They limit how long you can spread payments—that’s what they said to me.
There usually isn’t much room for negotiation with medical bills through financial aid programs. If your income is over the limit for assistance, they will provide a standardized payment plan based on your balance. Just be aware that they can check your credit when you push for changes, as you consented to this during treatment.
@Nico
It’s typically set at 400%, yeah.
Blackely said:
@Nico
It’s typically set at 400%, yeah.
We didn’t qualify for help simply because of our type of insurance. Just being under the 400% threshold isn’t always enough.
They probably require payments to cover the balance over 48 months.
Yes, they can set those rules. They likely limit you to a payment plan for a certain term, hence the 48-month option.
Request a hardship assistance application. Also called financial assistance or charity care. Any hospital associated with federal funding must offer some form of financial help—even when you are insured. There’s also an organization named DollarFor that assists with applications. Unless earning about $150,000, you might be eligible for a reduction.
Hospitals are businesses, and they have costs to meet. It’s tough for families dealing with medical bills. Local charities may help you, or consider a small loan with fixed interest from nearby credit unions. I relate, I’m also facing a hefty bill for a short ER visit, and they offered me a payment plan that’s quite high. It’s a struggle.
@Teal
Wow, that’s a ridiculous amount.