A big medical bill is one of the most common reasons people look for a personal loan. But medical bills come with options that most other bills don’t, and many people never hear about them. Work through these first.

1. Make sure you actually owe it

Check that you haven’t already paid it and that the bill is really yours. Then ask for an itemized bill and go line by line: do the services match what you got, are there duplicate charges, and were insurance payments applied correctly?¹

2. Check with your insurance

Compare the bill with your explanation of benefits. If a claim was denied, you can file an appeal and ask for an outside review.¹ The No Surprises Act may also protect you from certain out-of-network charges, such as many emergency services. It doesn’t cover ground ambulances.¹

3. Ask for financial assistance

Nonprofit hospitals are required to have financial assistance, sometimes called charity care, and some states add more protections.¹ Providers don’t always mention it, so ask directly. You can ask even after you’ve paid.²

4. Ask for an interest-free payment plan, or negotiate

Many providers will set up a payment plan without interest, or agree to lower the bill to an amount you can afford.¹ Ask the billing office before the bill goes to collections.

5. Be careful with medical credit cards

Some medical credit cards have deferred interest. If you don’t pay the full balance before the promo ends, or you miss a payment, interest can be charged on the entire original amount, and rates can top 25%.² The CFPB says these products are often more expensive than regular credit cards or personal loans.² Putting a bill on a card can also make it harder to get financial assistance.²

6. If you still need to borrow

Once you’ve done the steps above, a fixed-rate personal loan gives you one predictable payment and a clear end date. Compare the APR with any payment plan or card you’ve been offered, and run the numbers in our payment calculator.

A note on your credit report

The three big credit bureaus have removed paid medical collections from credit reports, and they’ve also taken steps to remove medical collections under $500.³ Debt from medical credit cards and financing plans isn’t covered by those protections, though.²

Still short? Check personal loan rates (paid link)

How to reach a nonprofit credit counselor: call the National Foundation for Credit Counseling at (800) 388-2227 (nfcc.org), or the Financial Counseling Association of America at (800) 450-1794 (find a counselor). Ask for any fees in writing before you sign up.

Sources

1. What should I do if I can’t pay a medical bill?, Consumer Financial Protection Bureau.
2. What should I know about medical credit cards and payment plans for medical bills?, Consumer Financial Protection Bureau.
3. Have medical debt? Anything already paid or under $500 should no longer be on your credit report, Consumer Financial Protection Bureau, May 8, 2023.

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