Hospitals and clinics are reporting a sharp uptick in uninsured patients, many of whom lost their coverage under the Affordable Care Act.
Leaders at some of the biggest hospital systems — including big for-profit chains — said the rise in uninsured patients has been sudden, the New York Times reported. In some cases, it's been as high as 20%. With this increase comes a rise in costs: Hospital executives were also noting a jump in unpaid medical bills and providing more charity care.
Whether you've recently lost your insurance coverage or are dealing with a steep medical bill, there are steps you can take to get back on solid ground.
Medical financial recovery plan
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Contact your provider first
This sounds simple but many people skip it: Before you do anything else, pick up the phone and call your hospital or provider's billing department. Ask directly whether they offer hardship programs, charity care or payment plan extensions. Many providers, especially nonprofit hospitals, are required to offer financial assistance but they won't volunteer that information. Negotiating a longer repayment window or a reduced balance can buy you breathing room while you sort out your next steps.
Consider a medical loan (carefully)
When a bill is too large to pay out of pocket and a payment plan isn't enough, a personal loan specifically used for medical expenses may be worth considering. These work the same way as any personal loan. You borrow a lump sum, then repay it in fixed monthly installments over a set term, typically at a lower interest rate than a credit card. The upside is that there are no surprises because you know exactly what you owe each month and when you'll be done paying it off.
That said, taking on new debt while you're already stretched thin is a real risk. Before you apply, make sure you understand the full cost of the loan — not just the monthly payment, but the APR, any origination fees and what happens if you miss a payment. You want to make your debt more manageable, not dig yourself in deeper.
LightStream's personal loans can be used for medical expenses, such as procedures and dental work. It's a solid option if you want to avoid extra fees as it doesn't charge origination fees, late fees or early payoff penalties. APRs are among the lowest rates we've seen from any lender and you can score a lower rate by signing up for autopay.
Upstart's personal loans for medical expenses include emergency treatments and already existing medical debt. This lender is worth considering if your credit score is low or your credit history is thin. It takes a broader view of your financial picture, which makes it a more accessible option if you haven't had enough time to build up a strong credit profile.
We like that LightStream offers competitive APRs, no late or origination fees and long loan term options. But you can't prequalify and the loan minimum may be too high if you only need to borrow a small amount.
- Same-day funding available.
- Loan amounts up to $100,000.
- No origination fee or late fee.
- The minimum loan amount is $5,000.
- Prequalification not available.
- No option to pay your creditors directly.
We like that Upstart considers factors besides credit score, including education, income and employment history. However, co-signers aren't accepted.
- Accept applicants with bad or no credit
- Minimum APR is lower than many competitors'
- Approves personal loans up to $75,000
- Most loans are funded the next business day
- Origination fee of 0% to 10%
- Doesn't allow co-signers or co-borrowers
Look into a debt relief plan
If your medical bills have already gone to collections or you're juggling multiple debts and feeling buried, a debt relief plan is another route. Debt settlement involves negotiating with creditors to accept less than what you owe.
This approach can reduce what you're paying each month but it comes with trade-offs. Debt settlement will typically be marked as "settled" rather than "paid in full," which can hurt your credit score. Some programs also charge fees based on the total amount enrolled, so it's worth doing your homework before you commit.
Don't be afraid to ask for help
There's no shame in leaning on outside resources during a health crisis and more help exists than most people know about. Hospital charity care programs, nonprofit organizations and state-level assistance programs can all help cover costs, sometimes significantly. If you have health insurance, it's also worth reviewing your explanation of benefits carefully to make sure you were billed correctly. Medical billing errors are quite common and disputing one could reduce what you owe without any additional debt or paperwork.
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