Need feedback on juggling some money

**Sari** · 04-26-2006, 02:40 PM

We've received a few checks in the mail today from our insurance for DH's medical bills. It is several thousand dollars. What we're supposed to do is deposit those checks and write checks in the same amount to the medical centers. What I am contemplating is using all or some of the money to pay off some of our more recent debt (not ancient stuff, but in the past 2-3 years) that would be holding us back from getting approved for a decent mortgage. Also I could pay a big chunk of my car note, and thereby preventing myself from paying quite a bit of interest (we have a horrible interest rate). We would still pay for the medical services, just in smaller monthly payments. I'm considering this because it would really help our credit, help us get current on our bills, plus I don't think there's any or much of an interest rate for the medical stuff, plus medical bills don't affect your credit the way other bills do. To reiterate, it's not that I wouldn't be paying them, just not the whole amount right away. What would you do?

**AmyBoz** · 04-26-2006, 02:51 PM

Pay the medical bills. If you don't you are creating another debt.

**Cele** · 04-26-2006, 03:12 PM

You might be commiting fraud if you use the money for any other purpose than paying those medical bills. I believe your intentions are good, but you could end up in big, serious trouble.

**thrifty gal** · 04-26-2006, 03:13 PM

I would pay the medical bills. And, I would also sit down with my debt, and create a debt reduction plan. Good luck either way.

**dwallyfam** · 04-26-2006, 04:11 PM

You would be constituting fraud if you did not pay the medical bills. If the centers call the insurance company (and they will) and find out that you have been paid, they will demand all the money up front and won't let you make payments.

Kellie

**Sari** · 04-26-2006, 04:52 PM

Hmm, I didn't realize that.

**Persimmon Lace** · 04-26-2006, 05:48 PM

If the insurance company sent you the check it's your money to do what you want. You will be liable for the medical bills, but that is still your money. I just talked to dh who is in the insurance business. The only way that doesn't apply is if you signed a waiver sending the payment directly to the medical agencies, which you evidently didn't do, as the check was sent to you. However, as tempting as it would be to pay off other bills I would pay off the medical bills simply because you don't know when something else could come up medically and you would have a bigger bill to pay off. I like having my medical bills paid off just because they can be annoying if they are not.

But you won't be commiting fraud but the medical agency you are dealing with might also not want to work with you very well either. You need to call the medical agencies now and see what kind of payment arrangements you could set up and pay as much as possible.

**pecunierrant** · 04-26-2006, 06:21 PM

Id pay for the medical services with the insurance money. Good luck.

**Cele** · 04-26-2006, 09:34 PM

Persimmon Lace, I wouldn't jump to that conclusion. I'm sure your DH knows his stuff, but state laws differ greatly on insurance issues. Where I live, OP could end up charged with fraud.

**Nada.Leona** · 04-26-2006, 09:39 PM

I would pay off the medical bills. One's health is far more important than a mortgage. Moreso, that was the original intention of the money. But that's just my two cents.

**chatterweb** · 04-26-2006, 11:12 PM

Juggling is ok, as long as you can pay everyone off at the end of the juggling!
I respect creditors who trust me with their money!
Do you have any other money you can count on for medical?

I also know nothing about the fraud part, but, I juggle all the time and do fine!

**frugalnana** · 04-28-2006, 02:07 AM

When I worked for the hospital and later at a doctors office we always would try to reduce the amount after insurance if a patient called and asked us if we offer a discount when paying the balance. So at the hospital it was always 20% of the balance and at the doctors office it was 10%. You might call each provider of service and ask them if they will take a certain amount off if you come in and pay cash and if they say yes get the persons name and correct phone number and ask if you can ask for them to pay the bill for the agreed amount. That way you still may make out with some extra cash when everything is said and done. Good luck.