New service helps consumers negotiate medical bills

06.02.09
By Gerri Detweiler

Consumers struggling to pay medical debt may find relief with a new service, IOUSOS, which offers a new technology platform designed to bring consumers and medical providers together to resolve unpaid medical bills.

Millions of Americans are struggling to pay medical bills. The results of the Kaiser Health Tracking Poll in February 2009 suggest that one in five Americans have found themselves forced into serious financial straits recently due to family medical bills. Specifically, 13 percent say they have used up all or most of their savings trying to pay off high medical bills over the course of the last 12 months, and just as many say their medical debt makes paying other bills difficult. A similar proportion (12 percent) have been contacted by a collection agency, and 7 percent are unable to pay for basic necessities like food, heat, or housing.

Healthcare providers are owed an estimated $100–$200 billion dollars in unpaid bills, reports Brian Mullally, CEO and Cofounder of GlobeFunder Ventures, Inc., the firm that launched IOUSUS. Many of those balances are for less than $1000, which makes it difficult for providers to collect them in an efficient way.

IOUSOS aims to change that reality with a straightforward process. Patients first register on the IOUSOS website. After their information has been verified (to comply with medical privacy regulations), they receive an email with instructions for logging into the system.

Patients are then presented with three or four different time-sensitive options for paying off the money they owe. The faster they can pay, the better the offer, explains Mullally. Once an offer is accepted, they can pay immediately by credit card. Installment plans are also available. While the service is aimed primarily at resolving debts before they are turned over to a collection agency, consumers may also be able to negotiate debts that have gone into collections.

Consumers can find the names if participating providers on the IOUSOS website, and they will receive notices from their providers when/if the service is available. While the initial number of participating healthcare providers is small, Mullally is optimistic that number will grow quickly.

“It's a friendly process, and not high pressure,” Mullally says. For consumers feeling financially stressed, this solution may be just what the doctor ordered.

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One in five Americans have found themselves forced into serious financial straits recently due to family medical bills.