How to Manage Medical Bills and Avoid Debt While on Disability

How to Manage Medical Bills and Avoid Debt While on DisabilityFor individuals receiving Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), medical expenses can quickly become overwhelming. Even with Medicaid or Medicare, out-of-pocket costs, unexpected medical bills, and uncovered treatments can lead to financial stress.

This guide will show you how to manage medical bills, reduce costs, and avoid debt while living on disability benefits.

1. Review Your Medical Bills for Errors

Medical billing mistakes are common, so always check your bills for:

• Duplicate charges for the same service

• Incorrect procedures or tests that weren’t performed

• Charges for covered services that should be billed to Medicaid or Medicare

How to Dispute Medical Billing Errors

• Request an itemized bill from your healthcare provider.

• Compare charges with your insurance Explanation of Benefits (EOB).

• Call the billing department to correct errors or request a review.

2. Apply for Financial Assistance Programs

Many hospitals and clinics offer charity care or financial assistance for low-income patients, including those on SSI and SSDI.

Programs That Can Help:

• Hospital Charity Care Programs: Many nonprofit hospitals offer free or discounted care based on income.

• Medicaid Spend-Down Programs: If your income is slightly above Medicaid limits, spend-down programs can help you qualify by deducting medical expenses.

• Prescription Assistance Programs: Pharmaceutical companies often provide free or reduced-cost medications for eligible individuals.

3. Negotiate Your Medical Bills

If you receive a large medical bill, you can often negotiate a lower amount before paying.

Ways to Lower Your Bill:

• Ask for a discount if paying in full upfront.

• Request a payment plan with lower monthly installments.

• Offer to pay Medicare/Medicaid rates, which are often lower than standard charges.

4. Use Medicaid and Medicare Benefits Wisely

• Medicaid recipients: Check if your state offers extra benefits such as dental care, vision, and transportation services.

• Medicare recipients: Consider enrolling in a Medicare Savings Program (MSP) to help cover premiums and deductibles.

• Dual-Eligible (Medicare & Medicaid): You may qualify for full coverage with little to no out-of-pocket expenses.

5. Find Low-Cost or Free Healthcare Services

There are many resources available for low-income individuals with disabilities:

• Community health clinics provide free or low-cost primary care.

• Federally Qualified Health Centers (FQHCs) offer medical, dental, and mental health services.

• Local nonprofits and disability organizations often provide grants or emergency medical assistance.

6. Consider an ABLE Account for Medical Savings

If you receive SSI or SSDI, an ABLE account allows you to save money for qualified disability expenses (including medical bills) without affecting your benefits.

• Annual contribution limit: $19,000 (2025)

• Funds grow tax-free and can be used for medical expenses.

7. Avoid Medical Debt Scams and Predatory Lending

Be cautious of:

• Medical credit cards that charge high interest rates.

• Debt settlement companies promising to erase medical debt (often scams).

• Payday loans with extremely high fees—seek nonprofit credit counseling instead.

8. Need Help Managing Your Medical Costs?

Navigating medical bills and benefits can be challenging, but Purple helps you track healthcare expenses, find financial assistance, and stay on top of your disability benefits.

Get started with Purple today and take control of your medical finances!