American citizens are now able to eliminate their unpaid medical bills using a Program called Medical Debt Relief
Medical debt is often overwhelming and difficult to manage. With the high cost of medical care, it is understandable that many families struggle to stay afloat each month. Unfortunately, without a question, health insurance benefits are required but many people simply do not have those benefits. With an increasing number of people living without health insurance, medical debt has become more common.
Under the terms of the Medical Debt Relief Act, a portion of medical bills can be forgiven if the patient settles the balance prior to the grace period expires. This act was created to reverse the long-term effects of having to settle for low priced care when they could have received lower or no rates by paying their bills at the beginning. By giving individuals who are thousands of dollars in debt the opportunity to get help with medical bills, the act provides a solution to the crisis facing the American population today. The Medical Debt Relief Act would also undo this unfair advantage by removing seven years from a patient’s credit records if they settle their medical bills prior to the grace period expires. This gives patients a second chance to pay for their medical bills without suffering the financial impact.
Many people with high medical debts have been forced to file bankruptcy. Although bankruptcy is a popular solution for resolving large debts, it also creates enormous stress and destroys a person’s credit history for ten years. This act would give these people the ability to avoid the drastic effects of bankruptcy and restore their credit. Although there are other methods of medical debt relief available, bankruptcy should not be considered an easy answer when other options are available.
Medical providers and creditors can agree to settle medical debt relief. Negotiations between the two parties may result in reduced medical bills. The terms may also include payment arrangements for the remaining balance. Creditors may agree to accept reduced payments compared to what they may receive if the entire amount is unpaid. For this reason, the Medical Debt Relief Act provides an incentive for both sides to come to a satisfactory agreement. This would make both sides more reasonable and could lead to a long-lasting solution for a large number of unresolved medical bills.
If the debtor’s medical debt relief plan is approved, the process of settling or reducing the outstanding balance can begin. The debtor will have to make monthly payments towards the settlement of the unpaid medical bills. The process of settling or reducing the bills should not take more than five years. The settlement amount will be given to the debtor in one lump sum.
There are also other benefits that come with the application of the Medical Debt Relief Act. One such benefit is free medical billing assistance to those who need this type of assistance. This assistance could come in the form of free medical billing software, online forms or other professional medical services that would allow the billing process to run much more smoothly and accurately. This would mean less time off work for the individual and greater ability to make timely payments to their creditors.
As many as one million Americans are currently struggling with medical debts. Many of these individuals are not able to work while they are financially strapped due to high medical costs. Many medical bills can reach the hundreds of thousands of dollars per month. Some individuals cannot pay even the low monthly minimums due to the sheer lack of available income.
Medical debt is nothing new. Medical billers have been working hard to negotiate settlements and reduce the overall impact on an individual’s credit score. With the help of the Medical Debt Relief Act passed by congress in 2021, credit card companies and other medical service providers are now becoming much friendlier to settle medical debt than they were before. This would encourage more people to seek out this type of debt relief.