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medical debt

Q&A: For estate executors, unpaid medical bills can be daunting

October 28, 2024 By Liz Weston

Dear Liz: My wife is in the process of being named executor for her late sister’s estate. There are several medical bills, including some that have been sold to collection agencies. Our understanding is that any negotiations or settlements should be done with those agencies as opposed to the original medical organization. Is this correct in general as well as in probate situations?

Answer: If a bill has been sold to a collection agency, that’s the entity your wife will have to contact. However, not all medical bills are sold. Sometimes collection agencies work on behalf of healthcare providers. When that’s the case, your wife may want to contact the original provider.

As executor, your wife can and should hire an attorney to advise her on administering her sister’s estate. The estate will pay the cost for this advice and your wife will receive helpful, personalized counsel on dealing with every aspect of being an executor, including this one, which is particularly fraught.

The Consumer Financial Protection Bureau recently warned that some medical debt collectors are violating federal law by inflating bills, trying to collect on debts that aren’t owed, demanding payment for services insurance has already covered and lying about consumers’ rights to contest bills. The attorney can help your wife verify the bills are accurate and negotiate settlements.

Filed Under: Medical Debt, Q&A Tagged With: collection agencies, debt collection, debt collection scams, Estate Planning, medical bills, medical debt

Thursday’s need-to-know money news

June 23, 2022 By Liz Weston

Today’s top story: Is medical debt disappearing from your credit report? Also in the news: A new episode of the Smart Money podcast on tackling the racial wealth gap, using the 25-year-rule to buy a cool, cheap are, and how to check if your new circuit breaker is part of a serious recall.

Is Medical Debt Disappearing From Your Credit Report?
Health care bills are about to become far less threatening to the financial well-being of millions of Americans.

Smart Money Podcast: Taking On the Racial Wealth Gap
This week’s episode is dedicated to a conversation with journalist Kimberly Atkins Stohr. We discuss her series about how to solve the racial wealth gap.

Use the 25-Year Rule to Buy a Cool, Cheap Car
Tiny ’90s-era Japanese imports are having a moment. Here’s what you need to know.

Check If Your New Circuit Breaker Is Part of This Serious Recall
Approximately 1.4 million electric panels are included in the recall.

Filed Under: Liz's Blog Tagged With: 25-year-rule, circuit breaker recall, credit report, medical debt, racial wealth gap, Smart Money podcast, used cars

Is medical debt vanishing from credit reports?

June 22, 2022 By Liz Weston

Health care bills are about to become far less threatening to the financial well-being of millions of Americans.

The three major credit bureaus are erasing most medical debts from people’s credit reports, and the Biden administration is reducing or eliminating medical debt as a factor in government lending decisions.

In my latest for the Associated Press, what you need to know about medical debt now.

Filed Under: Liz's Blog Tagged With: credit report, medical debt

Wednesday’s need-to-know money news

September 15, 2021 By Liz Weston

Today’s top story: Need a passport for a trip? Give yourself a big time cushion. Also in the news: How to avoid getting sick on a plane, what to buy (and skip) in September, and how to minimize credit damage from medical bills.

Need a Passport for a Trip? Give Yourself a Big Time Cushion
If you don’t pay fees for expedited service, you can expect to wait 18 weeks or more for a new or renewed passport.

How to Avoid Getting Sick on a Plane
Traveling can increase your risk of getting sick, but there are steps you can take to mitigate exposure.

What to Buy (and Skip) in September 2021
Plan accordingly.

How to Minimize Credit Damage From Medical Bills
Keeping what you owe out of the hands of debt collectors.

Filed Under: Liz's Blog Tagged With: healthy travel, medical debt, passport wait time, September shopping, travel

Q&A: Here’s why you shouldn’t put that huge hospital bill on a credit card

September 21, 2020 By Liz Weston

Dear Liz: Because of COVID, my 27-year-old son lost his job and health insurance. He was unable to afford continued health insurance and did not qualify for Medicaid. He contracted spinal meningitis and was hospitalized 12 days. The hospital reduced his bill to $28,000 from the original $80,000, but he is still unable to pay. He remains unemployed and without any savings. What would you suggest he do?

Answer: Your son should first call the hospital and ask about applying for financial assistance. Federal law requires nonprofit hospitals to offer this help to low-income patients, and many for-profit hospitals also offer programs that can reduce or even eliminate the charges.

He also should ask about a payment plan geared to what’s left of his income. He should resist any hospital pressure to put the bill on a credit card, because hospital payment plans typically don’t charge interest while credit cards do.

If he’s still left with a bill he can’t pay, he should consult a bankruptcy attorney, and do so as soon as possible. Bankruptcy experts are predicting a big uptick in filings as people and businesses struggle with fallout from the pandemic.

Filed Under: Credit Cards, Medical Debt, Q&A Tagged With: Credit Cards, medical debt, q&a

Friday’s need-to-know money news

March 29, 2019 By Liz Weston

Today’s top story: There’s more than one way to slay a debt. Also in the news: How to know when it’s OK to spend, 3 steps to spring cleaning your credit card debt, and what to do when you desperately need help with medical bills.

There’s More Than One Way to Slay a Debt
These key points could help.

How to Know When It’s OK to Spend
Loosening the purse strings.

3 Steps to Spring-Cleaning Your Credit Card Debt
Time to shake the dust off.

What To Do When You Desperately Need Help With Medical Bills
Looking into medical debt forgiveness.

Filed Under: Liz's Blog Tagged With: credit card debt, debt, debt forgiveness, medical debt, spending, tips

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