{"id":2057,"date":"2023-07-26T15:34:12","date_gmt":"2023-07-26T15:34:12","guid":{"rendered":"https:\/\/clearhealthcareadvocacy.com\/?p=2057"},"modified":"2024-01-17T22:01:42","modified_gmt":"2024-01-17T22:01:42","slug":"avoiding-medical-debt-applying-for-financial-assistance","status":"publish","type":"post","link":"https:\/\/clearhealthcareadvocacy.com\/index.php\/2023\/07\/26\/avoiding-medical-debt-applying-for-financial-assistance\/","title":{"rendered":"Avoiding Medical Debt: Applying for Financial Assistance"},"content":{"rendered":"\n

The rising cost of medical care in the U.S. is a significant burden to patients\u2014especially those who are uninsured or underinsured\u2014as they find themselves strapped by medical debt. Ironically, much of this medical debt is for services provided by non-profit hospitals which, as part of their requirements for tax-exemption, are required offer financial assistance (or \u201ccharitable care\u201d) to patients who qualify based on federal poverty guidelines<\/a>.<\/p>\n\n\n\n

As an independent patient financial advocate, I receive endless inquiries from patients whose medical bills are correct but unaffordable. In this situation, my first question to the patient is, \u201cHave you applied for financial assistance through the hospital?\u201d Nine out of 10 times, their answer is \u201cNo,\u201d or \u201cNo one told me that was that was an option.\u201d Instead of being offered financial assistance right out of the gate, patients are being offered monthly payment plans they cannot afford or, even worse, medical credit cards that allow them to make monthly payments (plus interest!) toward their already-unaffordable balances.<\/p>\n\n\n\n

Case in Point<\/h2>\n\n\n\n

A potential client reached out to me last year regarding her husband\u2019s nearly $500,000 balance after a weeks-long hospital stay for COVID. When she first contacted the hospital to see what could be done about the large balance, the hospital offered a 36-month payment plan\u2014at roughly $13,000 per month (um, hello?)! After verifying that there were no obvious billing errors and that their hospital indemnity policy had paid the $100k it had promised to pay, I quickly identified that the hospital was a non-profit and sent the client a link to the hospital\u2019s financial assistance policy. She texted me a couple weeks later to let me know they\u2019d been approved for a near-total write-off, with a remaining balance of $12,000 to be paid off over 36 months at $333\/month\u2014slightly more doable than $13,000\/month! <\/p>\n\n\n\n

Who Qualifies for Financial Assistance?<\/h2>\n\n\n\n

Eligibility criteria for hospital financial assistance can vary depending on the healthcare facility and local regulations. Basically, each hospital\u2019s requirements for charitable care are different, but most are based on income, insured status, assets, and residency.<\/p>\n\n\n\n

Patients often assume that their annual income is such that they won’t qualify for any financial assistance, but that might not be the case. Many hospitals offer some percentage of discount for patients whose annual household income is at\/below 400% of the federal poverty level\u2014meaning a family of four with a gross household income of $120,000 or less could qualify for at least a partial write-off.<\/p>\n\n\n\n

Not sure whether you\u2019d qualify for financial assistance? Apply anyway! Applying for financial assistance buys you more time in the billing cycle, as the hospital is not allowed to bill you while your application is being reviewed. And even if you don\u2019t qualify for 100% financial assistance, you may qualify for a smaller write-off, which is better than none at all!<\/p>\n\n\n\n

How to Apply for Financial Assistance<\/h2>\n\n\n\n
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A hospital\u2019s offer of financial assistance can often be found on the back of one\u2019s hospital bill (who reads the back of their bills, btw?), but you’ll usually need to search online to find the application itself\u2014the hospital\u2019s not going to make it so easy on you as to put the application itself in with that bill they mailed you!<\/p>\n<\/div>\n\n\n\n

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\"Financial<\/figure>\n<\/div>\n<\/div>\n\n\n\n

Here are a few pointers for applying for financial assistance:<\/strong><\/p>\n\n\n\n