HELP! My insurance out of pocket copays are going to ruin my credit!

[lhdez1984]

If anyone can help me with advice, that would be great! So here's my story:

 

I have been working my tail off for the last year to rebuild my credit. I really screwed it up in my teens/early 20's and I'm finally on the right path. It has been over 4 years since my last baddie and I have had a 15 month streak of on time payments. I have acquired quite a few credit/retail cards in the last year that have helped me bring up my score. (started with a CapOne secured card/ now have Nordstrom, Kohls, Kay's, VS, Express and recently a Barclay's card.) Anyhoo, I just had a baby and my employer switched health insurance providers when I was 7 months pregnant. My copays were through the roof and my out of pocket medical bills now = $4500.00. I have about 7 different creditors coming after me, now of which have hit my credit report and I am running out of time. I don't have the money to pay them right now. What can I do to save my report??? Any suggestions??

 

Please Help!

[BJKill]

In my experience, most medical providers will give you nearly forever to repay them (without interest) so long as you keep making some monthly payment. You don't want these accounts to go to collection (obviously) and there is no point putting the charges on a credit card and messing up your utilization.

 

If you pay $200 a month for 23 months it will be paid. If you have to, pay $100/month for 46 months and when you get some extra money, pay down those bills. Pay everybody something and then start applying extra money to pay off the smallest balance first and proceeding until the bills are paid.

 

Try to get an agreement with each creditor based on what you can pay.

 

It is not worth destroying your credit over $4500, even though it seems like a lot right now. This is a survivable disaster. Don't let it take you down.

[lhdez1984]

@BJKill: Would that be the case even if they have been sent to collections?

[breeze]

They sell their receivables when they need cash. If they take medicare or medicaid patients, they are having to wait 6 months or more to get paid, so they put the burden on folks with regular insurance, like you. They can sell the receivables, especially if they've given you a payment plan.

 

For this situation, you'll need to rely on the experts here, but for future situations, ask up front for a payment plan, many doctors have companies that will finance your out of pocket expenses at 0% for a specified time. Ask about this, and ask if they sell their payment plans after you make the agreement with them. Make sure you get to the top dog in the department, and ask for proof. Again, do not tell them why, they may just tell you what you want to hear. Then only go to doctors who take your credit into consideration.

 

Start a savings account for medical expenses since you have such a big out of pocket limit. Plan so it doesn't happen to you again.

[BJKill]

@BJKill: Would that be the case even if they have been sent to collections?

It wasn't clear to me that the creditors coming after you are collection agents. If these are medical bills in collection you need to study and follow the procedures listed in WhyChat's HIPAA process. It works.

 

If you have accounts still with the original medical provider, you should work out a payment plan before those accounts go to collection.

 

Good luck and congratulations on your new baby.

[lhdez1984]

@BJKill Thank you! and Yes I will look it up. The situation is that some bills have been sent to Collections but have not yet hit my credit report. I believe this is because it is fairly new but I would like to make arrangements with the Collectors to stop this from happening. In my past experience, it is so difficult to come up with a payment plan once it has hit their Dept. If I were to suggest a payment plan, they would probably laugh! lol! I guess a better question would be to is How do I negotiate with a CA when all they want is all there money up front? Such bullies!

[Why Chat]

Follow the guides:

http://www.whychat.5u.com/GUIDEBOOK.html

 

http://www.whychat.5u.com/GUIDE%20HIPAA%20PROGRAM.html

 

When was your baby born??

 

Do you have your EOMBs ( explanation of medical benefits) from your insurance??

Did you have coverage under the "old" plan for the pregnancy and were you switched DURING the pregnancy?

Have you spoken to the HC administrator at your employer for assistance on getting the deductibles rolled back??

There are a LOT of restrictions on employers cutting benefits and/or adding expenses when someone is in the midst of a medical situation.