Resolvly LLC on Medical Debt: How It Grows, and How to Tackle It

Sadly, it’s unsurprising that medical debt is soaring along with the unprecedented health crisis of the last couple of years. According to recent studies, Americans are stuck with a far higher amount of medical debt than first thought—at least $140 billion. Medical debt is the biggest source of debt collection actions in the U.S.

One of the biggest reasons medical debt is so staggering is because it’s not something we always see coming. Emergencies, illnesses, and accidents generate large bills in hospital visits and stays, expensive procedures, transportation, and outpatient care. Medical debt grows at a much faster and more profound rate than many expect, forcing many into dire financial straits to go along with their health problems.

Resolvly LLC looks at what goes into medical debt and a solution for getting your head above water.

What Creates Medical Debt?

Any interaction with or use with medical services and products goes against medical debt. That includes hospital bills, ambulance visits, surgery, post-treatment checkups, prescription drugs, and more. These expenses snowball, especially if a patient’s uninsured or what they need isn’t covered by their current insurance.

How Is Medical Debt Usually Paid Off?

Unlike physicians and medical staff, healthcare provider accountants don’t practice bedside manners. They aggressively seek repayment of medical bills. This forces some patients to rack up credit card debt or take out personal loans to avoid the consequences of default. Of course, this only transfers a patient’s debt repayment responsibility from one debtor to another.

Some patients rely on medical credit cards for specific drugs or supplies their insurance doesn’t cover. While this helps keep medical needs off one’s consumer credit record, the interest rate on credit cards can be prohibitively high. That adds an element of debt utterly unrelated to healthcare.

What Happens If Medical Debt Isn’t Paid Off?

Millions of Americans are responsible individuals who face sudden health crises and mounting healthcare debt. The upshot of not paying bills can be severe.

Late fees and penalties go into effect in all but a handful of states the minute a payment deadline passes. Your medical provider may hire a collection agency, usually about three months after payment is due. These agencies are well-known for their aggressive tactics. After extreme delays in medical debt repayment, the provider may sue you in civil court. Depending on state law, a hospital or insurance company can even put a medical lien on a personal injury settlement.

Even if these more drastic measures don’t happen, outstanding hospital and medical debt can hurt your credit score.

How to Tackle Mounting Medical Debt

While some patients declare bankruptcy or enter income-based repayment programs, they still face economic hardships on top of any lingering health issues. But in many cases, medical debt cases can be entirely dismissed.

Resolvly LLC links clients with medical debt to lawyers who specialize in getting that debt dismissed entirely. Based in Boca Raton, Resolvly is fully approved by the Florida Bar. We’ve helped thousands of clients find legitimate, legal solutions to having their medical debt vacated.