Business

      
      Medical debt is among the top causes of bankruptcy.  You'd think doctors and insurance companies would consider how an illness could

impact your ability to pay, and show some compassion.  But sympathy is in short supply when it comes to collecting a debt. 
      Whether you get behind due to being financially irresponsible or have an medical situation which you have no control over, it all

gets reported negatively to the credit bureaus. 
Even if a bill gets paid or settled after being sent to collection, it remains on your record for up to seven years.  U.S. Rep. Mary Jo

Kilroy (D- Ohio) has introduced legislation called the Medical Debt Relief Act, which would prohibit lenders from factoring in fully paid

or settled medical debt when determining credit worthiness. 
 However, the best way to avoid out-of-control medical debt is to be pro-active.  Here are a few ways to avoid getting overdue

bills or, at least, dealing with them successfully:
* Don't overlook mail from doctors and insurers.  Many times bills are confused with special offers or other advertisements from insurers.

 By the time you realize the error, it may be too late.  The best way to avoid this is to open and read every piece of mail from your

doctor, hospital or insurance company. 
* Understand what the bill is for. Don't just push the bill aside if you don't understand something.  According to a survey from Intuit of

Mountain View, CA, more than half of respondents admitted being puzzled by medical jargon on their bills.  About 25% of them ended up

getting behind in their bills by 90 or more days.  If you need someone to explain your bill, call the doctor's office.  If that doesn't

work, call the customer service number on your insurance card.   If that doesn't work, file a formal complaint or an appeal.  The

insurer's website or its customer service line should have information on how to do so. 
* If you dispute the bill, ask for a temporary suspension.  Ask your doctor not to send your bill to collections while you try and resolve

your issue with billing.  Since providers lose money on the bill when they hire a collection agency, you are more likely to get their

cooperation. 
* Try to negotiate and work out a payment plan.  You won't be off the hook, but the provider may be willing to work with you.  Most

providers will be willing to accept payments as long as you keep your word and send something on a regular basis.  This will save money

for the provider and save your good credit.  So it's definitely worth a try.  Always get the agreement in writing to protect yourself. 
      The key to staying on top of medical bills is to prevent them from getting overdue.  In this economic downturn, the good news is

people are more willing to negotiate.  Let this situation work for you.