Traveling internationally can be an amazing experience. But what if you have a medical emergency abroad and are stuck with a hospital bill you can’t pay? Unfortunately, failing to pay medical bills overseas can lead to serious repercussions. In this article we’ll break down the potential consequences and why travel insurance is a must.
Debt Collection Efforts
If you leave a foreign hospital without settling your bill, rest assured they will pursue payment. Hospitals have teams dedicated to collecting on unpaid medical debts globally. They may hire collection agencies that specialize in international collections to track you down
If you provided your home address, expect to receive letters and calls demanding payment. They can even obtain your contact info from your passport or visa documents. The hospital will keep escalating collection tactics until you pay what is owed. Ignoring the debt won’t make it go away.
Damaged Credit Scores
Just like unpaid medical bills at home failing to pay a foreign hospital can severely hurt your credit standing. The debt will likely get reported to credit bureaus in your home country.
This hurts your credit score, making it harder for you to get loans, credit cards, mortgages, rental applications, and other things in the future. A low score from an international medical debt is the same as a low score from a loan in your own country.
Lawsuits and Judgments
If collection efforts fail, the foreign hospital may pursue legal action. They can hire an attorney to file a lawsuit against you in your home court system. If you don’t respond, they will obtain a legal default judgment requiring payment.
Your local court will enforce the foreign judgment through wage garnishment, asset seizure, and other recovery methods. Getting sued is pricey – you’ll now owe the original bill plus all legal costs. Resolving debts before a lawsuit is always cheaper.
Immigration Trouble
If you don’t pay your medical bills, you might have trouble getting back into some countries in the future. Certain countries reserve the right to deny entry to travelers with unresolved debts.
You may get flagged at customs and detained for the unpaid hospital bills. In some cases, you may be barred entirely and deported back home on the next flight out. Don’t risk a lifetime travel ban – take care of medical debts promptly.
Travel Insurance Importance
To avoid the nightmare of paying medical bills abroad, always travel internationally with comprehensive health insurance. Policy benefits like emergency treatment coverage, medical evacuation, 24/7 travel assistance can be real life-savers if you suffer an illness or injury.
Relatively small premiums give peace of mind knowing you have global medical coverage. Foreign hospital bills can easily cost tens of thousands of dollars to pay out of pocket. Uninsured travelers are taking a huge risk when they do this.
Request an Itemized Bill
If stuck with a large foreign medical bill, be sure to request an itemized statement listing all charges and services. Oftentimes errors occur resulting in inflated balances. Double check that you were only billed for care actually received.
Compare line items to your discharge papers detailing treatments. Dispute any discrepancies directly with the hospital. This could lower your owed amount considerably. Don’t blindly accept or pay a suspect bill.
Ask About Payment Plans
See if the foreign hospital offers monthly payment plans to pay off your bill over time rather than demanding lump-sum payment upfront. Many medical providers understand the high costs involved and will work with you on a reasonable installment schedule.
Explain your financial situation openly and request an affordable payment plan option. As long as you pay something each month showing good faith effort, this may stop collections activities against you.
Negotiate Discounts
Hospitals often negotiate and provide discounts on account balances, especially for uninsured foreign patients paying out-of-pocket. Contact the billing department, explain you have no insurance coverage, and politely ask for a reduced bill amount.
Due to routinely inflated healthcare pricing, most facilities can cut bills significantly and still profit. Discounts up to 30-40% off the initial balance are possible with some negotiation skills. Every little bit helps when facing medical debt abroad.
Request Charity Care
Some foreign hospitals have charity care programs providing free or discounted services to low-income foreign patients unable to afford treatment costs. To qualify, you’ll need to submit income documentation proving your financial hardship status.
While charity care eligibility requirements differ across hospitals, it never hurts to explain your situation and ask if they have assistance options. Best case they reduce or eliminate your balance. The worst that happens is they say no to your request.
Consider Medical Loans
If you absolutely need help paying off a large foreign medical bill, specialized medical loans are an option, though not ideal. Companies like Medolend and ClearGlass lend specifically to patients with hospital debts above typical credit limits.
However, high interest rates make these loans very expensive over time. Exhaust all other avenues first before resorting to a financing offer which adds substantial costs to your debt. Get quotes from multiple lenders and compare terms.
The bottom line is that failing to pay medical bills overseas can lead to expensive consequences. Protect yourself with travel insurance, thoroughly review hospital bills for errors, negotiate affordable payment options, and avoid ignoring foreign medical debts. Being proactive is key to resolving overseas hospital bills cost-effectively.
How to Manage Unpaid Medical Debt
When healthcare bills start piling up, its important to be proactive rather than ignoring the situation. If you’re faced with medical debt you can’t pay, try the following tips to reduce what you owe so you can minimize the effect of these bills on your finances, health, and future.
Get Outside Help
Few healthcare consumers are experts in medical billing. A savvy choice is to enlist the help of someone who is: a medical caseworker, debt negotiator, or medical billing advocate. These professionals might be able to reduce what you owe when you can’t or are too timid to try.
Medical billing advocates are insurance agents, nurses, lawyers, and healthcare administrators who can help decipher and lower your bills. They’ll look for errors, negotiate balances due, and appeal excessive charges. Some advocates charge hour rates which can be about $100 or as much as $400 or $500.
You can also ask to speak with a caseworker from your hospital or insurance company if you need help understanding your bills and resolving payment issues, said Fox. A caseworker may be able to refer you to charities, churches, community organizations, and government agencies that can offer financial assistance.
Veterans who have lost income or encountered substanial healthcare expenses can may also be obtain special government assistance . You can apply to the Department of Veterans Affairs (VA) for financial hardship assistance with current VA bills or future copays.
What Happens If You Don’t Pay Medical Bills?
FAQ
What happens if you don’t pay a bill in another country?
What happens to patients who can’t pay their hospital bills in America?
What happens if a foreigner goes to the hospital in the US?
Can you ignore medical debt?
What happens if you can’t pay your medical bill?
If you can’t pay your medical bill at the time care was received, then it’ll turn into medical debt, something that many Americans face.
What happens if a hospital doesn’t pay off a medical debt?
Another side note: If the hospital decides they can’t collect and writes off the debt, it becomes taxable income. Depending and what mutual tax agreement exists between the countries, that may also create problems. Long story short: It’s highly advisable to have medical travel insurance.
Why do medical bills turn into medical debt?
One reason why medical bills can so easily turn into medical debt is because a medical emergency isn’t an an expense most anticipate, and if every dollar of one’s monthly budget is already accounted for, it can be difficult to pay a medical bill once it arrives.
Should you pay a medical bill if you don’t have health insurance?
Especially if this bill comes as a surprise; e.g., if you thought your health insurance would cover the entire bill, only to learn you’re responsible for a greater portion of it, after all. Further, as said, for those without health coverage, a medical bill can prove a significant, immediate financial burden, one with lasting impact.
What if I can’t pay medical debt?
If you can’t pay your medical debt, you can ask for a payment plan that’s affordable for you, find financial assistance programs, or consolidate the debt. Some organizations offer grants to help you pay medical debt. What if you don’t pay?
Can I get help paying my medical bills?
You may qualify for help paying bills and even medical debt forgiveness. The U.S. Department of Health and Human Services maintains a state-by-state list of more than 100 financial assistance programs that help people with healthcare and medical expenses.