Many Millennials, already burdened with 澳洲幸运5官方开奖结果体彩网:student debt, are now finding another unwelcome envelope in their mailboxes: past-due bills for their medical debts. Though younger people tend to be healthier than their older peers, they are as likely—or even more likely—to have such debt. Ideally, an emergency fund is the best source to pay off accumulated medical debt that i⛦s not covered by health insurance but borrowers do have options like medical loans for uncovered charges. Here's what Millennials need to know about medical debt and how to handle it.

ཧ Why Millennials Face Medical Debt—and What They Can Do About It

Millennials, born between 1981 and 1996, range in age from 28 to 43, as of 2024. That puts them in the two age groups with the higheꦫst l🅷evels of medical debt.

For example, a 2022 analysis by the Consumer Financial Protection Bureau found that 32.7% of those age 25 to 34 reported having medical debt, as did 30.1% of those 35 to 44. Other age groups had significantly less debt: 22.6% in the 18 to 24 group, for instance, and 8.5% among those 65 and over.

There are several reasons Millennials may find themselves struggling with medical debt. For one, younger people are less likely to have 澳洲幸运5官方开奖结果体彩网:health insurance than older ones. Older workers may have settled into jobs with employer-paid health plans, and most Americans over 65 are eligible for the federal government's Medicare program. In addition, up to age 26, many Americas are eligible to remain on their parents' health plans.

Compounding the problem, younger people may not have had time to build up enough savings to pay off a big medical bill, should they ever face one. That's especially true if they have student debt to pay off.

If you're in that situation, there are a few things you can do to keep medical debt from adding financial insult to injury.

Get Health Insurance if You Don't Have It

While health insurance coverage is no guarantee against medical debt, it can make a significant difference. A 2022 KFF study, for example, found that 62% of people without health insurance reported health care debt, compared to 44% of people with insurance.

Many people obtain health coverage through their employer's group plan. If the employer's coverage is in the form of a 澳洲幸运5官方开奖结果体彩网:high-deductible health plan, the employee also has the option of opening a tax-deductible 澳洲幸运5官方开奖结果体彩网:health savings account (HSA) to pay medical bills that aren't covered b🐻y insurance.

If your employer provides a different kind of health insurance plan, you may be able to set money aside for medical expenses through a 澳洲幸运5官方开奖结果体彩网𓆉:health Flexible Spending Arrangement (FSA) if your empl💜oyer offers one. It also has tax advantages.

Another option is buying a policy through the federal government's 𒀰Affordable Care Act (ACA) Health Ins🥃urance Marketplace. The regular window for signing up, known as the open enrollment period, runs from November 1 to January 15 each year. However, it's possible to join at other times if you qualify for a special enrollment period due to a major life event, such as losing your existing health coverage, moving, getting married, having a baby, or adopting a child.

People with low incomes, who also meet other requirements, may be eligible for the joint federal-state health insurance program Medicaid. For information, visit the website of your state Medicaid office or Medicaid.gov.

Start an Emergency Fund

The traditional advice to stash away three to six months' worth of living expenses in an 澳洲幸运5官方开奖结果体彩网:emergency fund may be unrealistic for many younger Millennials, but it's still a worthy goal to build toward. One 澳洲幸运5官方开奖结果体彩网:way to make it a little easier is to earmark any extra income beyond your regular paycheck for that purpose. This might include a bonus at work, a 澳洲幸运5官方开奖结果体彩网:tax refund, income from a side gig, or at least a portion of your birthday money. ♒If you need to draw on the account for a medical bill or other expensܫe, try to start replenishing it as soon as you are able. 

Apply for a Personal Loan

Another option for those with significant medical debt can be personal loans. Some doctors and hospitals offer medical credit accounts directly to their patients in partnership with companies like 澳洲幸运5官方开奖结果体彩网:CareCredit which can help finance the cost of procedures and medical care not covered by health insurance. Many banks and online lenders also offer personal loans designed for medical debt as well as to spread payments out over time.

Know Your Rights

It may be tempting to let medical bills pile up, unopened, on your kitchen counter. However, that will only lead to bigger problems, including serious damage to your 澳洲幸运5官方开奖结果体彩网:credit score. Therefore, if you receive one, try these s🐠teps:

• First, make sure you really owe the debt. Busy hospitals and doctor's offices are known to make billing mistakes. Check your bill and question any charges for services you don't remember receiving.
• Call your insurer. Your insurance company, if you have one, may have denied all or part of your claim in error. That can happen, for example, if the provider used the wrong billing code for a service. If you disagree with your insurer's decision, you have a right to appeal it.
• Try to work it out with the provider. If you can't pay the bill in full, see if you can negotiate a lower fee or ask if you can spread your payments out over a series of months. Some providers would rather accept less money now than alienate a patient or have to turn your account over to a 澳洲幸运5官方开奖结果体彩网:collection agency.

If you do find yourself dealing with a collection agency, bear in mind that you have rights under the federal 澳洲幸运5官方开奖结果体彩网:Fair Debt Collection Practices Act, one of which is not to be harassed. You can learn more about this law, which covers medical and other kinds of personal debts, on the Federal Trade Commission (FTC) website.

The 澳洲幸运5官方开奖结果体彩网:Consumer Financial 🍬Protection Bureau (CFPB) also has that you can use to deal with debt collectors. Finally, be wary of companies that promise—for a fee, of course —to make your debts disappear. This is an area that is rife with scams, the FTC warns.

The Bottom Line

Anyone can experience a costly illness or medical emergency, and plenty of Millennials do each year. In today's U.S. health-care system, it doesn't take much to generate significant debt. So no matter how healthy you feel it's smart to get health insurance and to start 澳洲幸运5官方开奖结果体♐彩网:pꦑutting money away in an emergency fund, just in case.