{"id":10882,"date":"2025-02-27T19:45:36","date_gmt":"2025-02-27T19:45:36","guid":{"rendered":"https:\/\/finderica.com\/?p=10882"},"modified":"2025-02-27T19:45:36","modified_gmt":"2025-02-27T19:45:36","slug":"what-happens-when-you-dont-pay-your-medical-bills","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=10882","title":{"rendered":"What Happens When You Don\u2019t Pay Your Medical Bills?"},"content":{"rendered":"\n<div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"lazyload clicker_number\" style=\"position: absolute; height: 1px; width: 100%\" alt=\"ScoreCard Research\" data-count=\"104.245.38.58,104.245.38.58, 108.162.246.13\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\"><\/p>\n<p>If you\u2019re struggling with unpaid medical bills, you\u2019re not alone.<\/p>\n<p>Americans owe an estimated $220 billion in medical debt, according to a 2024 analysis by <a href=\"https:\/\/www.healthsystemtracker.org\/\" target=\"_blank\" rel=\"noopener\">the Peterson-KFF Health System Tracker.<\/a><\/p>\n<p>Mounting medical bills can wreck your financial life. They can damage your credit score, make it difficult to pay other bills and demolish your emergency savings fund.<\/p>\n<p>However, the rising cost of health care and a lack of adequate insurance make it difficult for many people to avoid medical bills.<\/p>\n<p>Fortunately, there are steps you can take both before and after seeking health care to help lower or even eliminate your medical debt.\n<\/p>\n<h2>So What Happens When You Don\u2019t Pay Medical Bills?<\/h2>\n<p>You might not want to deal with that bill \u2014 but avoiding your medical debts can have serious financial consequences.<\/p>\n<div class=\"thepe-top-of-post\" id=\"thepe-1865746333\">\n<div class=\"adBorder\" id=\"thepe-878448587\">\n<h3>5 Companies That Send People Money When They\u2019re Asked Nicely<\/h3>\n<p>When you log into your bank account, how do your savings look? Probably not as good as you\u2019d like.<\/p>\n<p>It always seems like an uphill battle to build (and keep) a decent amount in savings. But what if your car breaks down, or you have a sudden medical bill?<\/p>\n<p><a href=\"https:\/\/partners.thepennyhoarder.com\/nice-companies-prt\/?aff_id=384\" target=\"_blank\" rel=\"noopener\">Ask one of these companies to help\u2026<\/a><\/p>\n<\/div>\n<\/div>\n<p>Specifically, this is what can happen if you don\u2019t pay medical bills:<\/p>\n<ul>\n<li aria-level=\"1\">Additional reminders and phone calls from the hospital or doctor\u2019s office<\/li>\n<li aria-level=\"1\">Late fee charges<\/li>\n<li aria-level=\"1\">Forwarding the debt to a collections agency<\/li>\n<li aria-level=\"1\">Increasing letters and phone calls from the agency<\/li>\n<li aria-level=\"1\">Legal action, such as wage garnishment<\/li>\n<\/ul>\n<p>If a medical bill isn\u2019t paid after a certain period of time, it can be turned over to a debt collection agency.<\/p>\n<p>So long as a medical bill is yours, it\u2019s accurate and you owe the money, then debt collectors can contact you to try to collect it, according to the <a href=\"https:\/\/www.consumerfinance.gov\/about-us\/blog\/know-your-rights-and-protections-when-it-comes-to-medical-bills-and-collections\/#:~:text=If%20the%20medical%20bill%20is,a%20lien%20on%20your%20home.\" target=\"_blank\" rel=\"noopener\">Consumer Financial Protection Bureau<\/a>.<\/p>\n<p>Letting your medical bills linger in collections is a bad idea. Debt collectors can actually sue you to recover the money.<\/p>\n<p>If they win the lawsuit, the debt collector can garnish wages from your bank account or place a lien on your home.<\/p>\n<p>To avoid having your bill sent to collections, call the hospital or doctor\u2019s office billing department and work with them to create a payment plan you can afford \u2014 then stick to it.<\/p>\n<h3>How Unpaid Medical Bills Impact Your Credit Score<\/h3>\n<p>Unpaid medical bills won\u2019t hurt your credit score immediately. But if you ignore them long enough, your score will suffer.<\/p>\n<p>First, your medical provider will need to send the bill to a collection agency. That could take anywhere from one to six months. Then, the collection agency must try to collect on the debt for a full year before it appears on your credit reports.<\/p>\n<p>If the agency reports the unpaid medical debt to credit reporting agencies, it will appear on your credit reports under payment history, which makes up about 35% of your credit scores.<\/p>\n<p>The exact impact depends on your credit situation, but even someone with a good credit score could see a drop of as much as 50 to 100 points, though the effect will lessen over time<\/p>\n<p>An unpaid medical bill in the payment history section of your report can cause your credit score to drop by as much as 50 to 100 points. Unpaid medical debts can linger on your credit report for up to seven years but changes earlier this year mean that bills you\u2019ve paid off after being sent to collections won\u2019t show on your credit report.<\/p>\n<p>Your credit score impacts many things in your life. A bad credit score can keep you from opening a new credit card or skyrocket your interest rate on a new loan.<\/p>\n<h2>So Why Wouldn\u2019t You Pay Your Medical Bills?<\/h2>\n<p>Well, some of us can\u2019t afford unexpected medical bills.<\/p>\n<p>More than 100 million people in the U.S. live with medical debt, according to a recent joint research project from <a href=\"https:\/\/www.npr.org\/sections\/health-shots\/2022\/06\/16\/1104679219\/medical-bills-debt-investigation\" target=\"_blank\" rel=\"noopener\">NPR and the Kaiser Health Network<\/a> released in July 2022.<\/p>\n<p>The poll found that more than half of U.S. adults say they\u2019ve gone into debt because of medical or dental bills in the past five years.<\/p>\n<p>Medical debt isn\u2019t just a problem for the uninsured or underinsured. It can also come from billing issues, like out-of-network doctors, hospitals or ambulance rides people thought were in-network.<\/p>\n<p>The <a href=\"https:\/\/www.consumerfinance.gov\/about-us\/newsroom\/cfpb-estimates-88-billion-in-medical-bills-on-credit-reports\/\" target=\"_blank\" rel=\"noopener\">Consumer Financial Protection Bureau<\/a> aired its concerns about the use of medical collections \u2014 a main point being that many consumers are unaware their medical debt even exists, unlike unpaid utility and phone bills.<\/p>\n<p>The agency found that 58% of bills in collections and on people\u2019s credit records are medical bills.<\/p>\n<h2>Here Are 6 Ways to Tackle Your Unpaid Medical Bills<\/h2>\n<p>The best advice, as with almost any financial matter, is to stay proactive.<\/p>\n<h3>1. Check for Errors<\/h3>\n<p>You don\u2019t want to pay for someone else\u2019s mistakes. As many as <a href=\"https:\/\/www.healthline.com\/health-news\/80-percent-hospital-bills-have-errors-are-you-being-overcharged#6\" target=\"_blank\" rel=\"noopener\">80% of medical bills contain errors<\/a>, so you should make correcting billing errors your first priority.<\/p>\n<p>\u201cFirst, get a detailed, itemized statement to see if you even owe it and that it\u2019s accurate,\u201d said\u00a0 Pat Palmer, Medical Billing Advocates of America founder and CEO.<\/p>\n<p>If you have health insurance coverage, make sure the claim was correctly submitted to your health insurance company and they paid their share.<\/p>\n<p>Check your itemized billing statement for duplicate items, services you didn\u2019t receive and charges that your health insurance company should have picked up.<\/p>\n<p>Call the hospital billing department or your provider\u2019s office manager with questions or if something doesn\u2019t look right. Remember: You have the right to demand to know what you\u2019re paying for.<\/p>\n<p>You can also ask the provider not to send the bill to collections until you can make a payment. This isn\u2019t guaranteed to work, but still worth trying.<\/p>\n<h3>2. Try to Negotiate Your Bill<\/h3>\n<p>If you find you do owe the bill, try calling and negotiating with your medical provider.<\/p>\n<p>You might be able to negotiate your medical bill to a smaller amount or set up a repayment schedule, Palmer said.<\/p>\n<p>Start the negotiation process with the medical provider \u2014 the hospital or doctor\u2019s office where you got care. Medical providers may ask for proof of income or other financial statements.<\/p>\n<p>Negotiating your medical bill can help get part of the unpaid debt forgiven. Or you might be able to work out a lower payment or a no-interest payment plan.<\/p>\n<p>If the provider can\u2019t or won\u2019t negotiate and the bill is in collections, then ask the bill collector if you can settle for a lesser amount.<\/p>\n<p>Providers and debt collectors are often willing to negotiate because they rather get <i>some <\/i>money from you than nothing at all.<\/p>\n<p>If you\u2019re successful, get details about the payment plan and the new amount you owe in writing. This way you have a record of your agreement with the provider or debt collection company.<\/p>\n<h3>3. Ask About Financial Assistance Programs<\/h3>\n<p>Owe a big hospital bill? Call the hospital\u2019s billing department and see if they offer financial assistance for unpaid medical bills.<\/p>\n<p>If you make less than the federal poverty income level, you could qualify for the hospital\u2019s charity care program, which covers the medical expenses of patients with low incomes.<\/p>\n<p>Even if you make two to three times the federal poverty level, you\u2019re still likely to qualify for a discount on your bill.<\/p>\n<p>Just make sure to speak with the billing department within 90 days of getting the bill.<\/p>\n<h3>4. Know Your Rights and Advocate for Yourself<\/h3>\n<p>Consumers are enjoying more protections from the credit-damaging consequences of medical debt than they used to.<\/p>\n<p>In 2022, the three major credit reporting agencies \u2014 Equifax, Experian and TransUnion \u2014 announced that paid medical bills will no longer be included on credit reports issued by those companies.<\/p>\n<p>In the past, a medical bill that went to collections could linger on your credit report for years \u2014 even after you paid it off.<\/p>\n<p>Another change in 2022: Medical bills only show up on your credit report if they go unpaid for at least 12 months. (It used to be six months).<\/p>\n<p>And starting in March 2023, the three major credit bureaus will not include information on medical bills in collection for amounts of $500 or less on consumer credit reports.<\/p>\n<p>Here are two rights you have, according to the Consumer Financial Protection Bureau:<\/p>\n<ol>\n<li aria-level=\"1\">\u00a0Medical debt collectors can\u2019t engage in aggressive collection tactics, like calling you around the clock, harassing you or contacting you through social media pretending to be someone else. You have the right to tell collections agencies to stop contacting you. Learn about <a href=\"https:\/\/www.consumerfinance.gov\/about-us\/blog\/understand-how-cfpb-debt-collection-rule-impacts-you\/\" target=\"_blank\" rel=\"noopener\">your rights in the debt collection process<\/a> and how to file a complaint.<\/li>\n<li aria-level=\"1\">Debt collectors can\u2019t report a medical bill to the three credit bureaus without trying to collect the debt from you first. Here\u2019s how to <a href=\"https:\/\/www.consumerfinance.gov\/ask-cfpb\/how-do-i-dispute-an-error-on-my-credit-report-en-314\/\" target=\"_blank\" rel=\"noopener\">dispute an error on your credit report<\/a>.<\/li>\n<\/ol>\n<p>In August 2022, VantageScore announced all paid and unpaid medical debt \u2014 regardless of how much is owed or how long the debt has been in collections \u2014 will be excluded from 3.0 or 4.0 score calculations by mid-October 2022.<\/p>\n<p>Finally, The No Surprises Act protects you from receiving surprise bills from out-of-network providers you didn\u2019t choose in a medical emergency. This rule went into effect January 2022.<\/p>\n<div class=\"call-out-box\" data-post-id=\"37407\">\n\t\t\t\t\t\t<span class=\"call-out-box-description\">Dealing with debt collectors? Knowing these five things can reduce your stress and save you time.<br \/>\n<\/span><\/div>\n<h3>5. Get Outside Help<\/h3>\n<p>Medical bill advocate organizations can help negotiate bills on your behalf. They can also detect billing errors the average patient might miss.<\/p>\n<p>Medical bill advocates come at a cost, though. They often charge by the hour (think $100 an hour or more), or they take a percentage of the amount they\u2019re able to get reduced from the bill (usually 25% to 35%).<\/p>\n<p>Two major medical billing advocate organizations include the <a href=\"https:\/\/www.patientadvocate.org\/\" target=\"_blank\" rel=\"noopener\">Patient Advocate Foundation<\/a> and <a href=\"https:\/\/medliminal.com\/\" target=\"_blank\" rel=\"noopener\">Medical Billing Advocates of America<\/a>.<\/p>\n<h3>6. Get Your Medical Bills Under $500<\/h3>\n<p>In the first half of 2023, all medical debt <a href=\"https:\/\/www.consumerfinance.gov\/about-us\/newsroom\/cfpb-publishes-analysis-of-potential-impacts-of-medical-debt-credit-reporting-changes\/#:~:text=Starting%20in%202023%2C%20medical%20collections,than%20medical%20bills%20over%20%24500\" target=\"_blank\" rel=\"noopener\">less than $500<\/a>\u00a0stopped appearing on credit reports from the three major bureaus.<\/p>\n<p>If you have unpaid medical debt, consider getting it below $500 so that it will no longer appear on your credit report.<\/p>\n<h2>Legal Protections Against Medical Debt<\/h2>\n<p>\nMedical debt can feel overwhelming, but various legal protections exist to safeguard consumers. Understanding these protections can help you navigate the complexities of medical debt more confidently and secure your financial well-being.\n<\/p>\n<h3>The No Surprises Act and Its Implications<\/h3>\n<ul>\n<li>Understanding the No Surprises Act: Enacted in January 2022, the No Surprises Act aims to protect patients from unexpected medical bills from out-of-network providers during emergency services or at in-network facilities. This groundbreaking legislation ensures that patients are only responsible for in-network cost-sharing amounts in these situations, significantly reducing the potential for crippling medical bills.\n<\/li>\n<li>How It Affects You: If you\u2019ve received an emergency service or were treated by an out-of-network provider at an in-network facility, review your bills to ensure compliance with the No Surprises Act. If a bill seems to violate this act, you have the right to dispute it. Familiarize yourself with the specific steps to take, including contacting the provider\u2019s billing department and filing a complaint with the appropriate federal or state agency if necessary.\n<\/li>\n<\/ul>\n<h3>State-Specific Medical Debt Protections<\/h3>\n<ul>\n<li>Navigating State Laws: In addition to federal laws, many states have enacted legislation to provide further protections against medical debt. These laws can vary widely, from limits on interest rates that can be charged on medical debt to prohibitions against certain aggressive collection practices.\n<\/li>\n<li>How to Leverage State Protections: Research your state\u2019s specific protections against medical debt. This might involve visiting your state government\u2019s website or contacting a consumer protection agency. Understanding these laws can empower you to challenge unfair billing practices and seek recourse if your rights are violated.\n<\/li>\n<\/ul>\n<h2>FAQs on Managing Medical Bills and Debt<\/h2>\n<p>\n<strong>How can I negotiate my medical bills if they are too high?<\/strong>\n<\/p>\n<p>\nBegin by requesting an itemized bill from your healthcare provider to review for any inaccuracies. Then, research the typical costs for the services you received using healthcare databases like Healthcare Bluebook. Contact the billing department to discuss a reduction in the bill or set up a manageable payment plan. Mention any financial hardships and be prepared to negotiate firmly but respectfully.\n<\/p>\n<p>\n<strong>Are there any programs available for medical debt forgiveness?<\/strong>\n<\/p>\n<p>\nYes, many hospitals and medical facilities offer financial assistance programs that can partially or fully forgive medical debt for eligible individuals. These programs often consider your income, financial hardship, and uninsured status. Non-profit organizations and charities also offer grants and assistance for specific medical conditions or demographic groups.\n<\/p>\n<p>\n<strong>How does unpaid medical debt affect my credit score?<\/strong>\n<\/p>\n<p>\nInitially, unpaid medical debt won\u2019t impact your credit score. However, if the debt is transferred to a collection agency and remains unpaid, it can appear on your credit report and significantly lower your score. Recent changes to credit reporting rules now give consumers more time before medical debt affects their credit scores, and debts under $500 or paid medical debts are often excluded.\n<\/p>\n<p>\n<strong>What should I do if my health insurance does not cover a medical bill?<\/strong>\n<\/p>\n<p>\nFirst, review your insurance policy to understand what should be covered. If you believe a service was wrongly denied, file an appeal with your insurance company. Provide supporting documents and a letter from your healthcare provider explaining why the treatment was necessary. Additionally, inquire about out-of-network charge protections if applicable.\n<\/p>\n<p>\n<strong>How can I protect myself from surprise medical bills?<\/strong>\n<\/p>\n<p>\nThe No Surprises Act provides protections against unexpected bills from out-of-network providers during emergency visits or at in-network facilities. Always ask providers if they are in your insurance network before receiving treatment, and check if any upcoming procedures involve out-of-network providers. Understanding your rights under this act can help you dispute any surprise bills you may receive.\n<\/p>\n<p>\n<strong>Can medical debt be included in bankruptcy?<\/strong>\n<\/p>\n<p>\nYes, medical debt is considered unsecured debt, similar to credit card debt, and can be discharged in both Chapter 7 and Chapter 13 bankruptcy. However, bankruptcy should be considered a last resort due to its long-term impact on your credit score and financial stability. Consulting with a bankruptcy attorney can provide guidance on whether this is a suitable option for your situation.\n<\/p>\n<p>\n<strong>What are my rights when dealing with debt collectors for medical bills?<\/strong>\n<\/p>\n<p>\nUnder the Fair Debt Collection Practices Act, you have rights that protect you from abusive collection practices. Debt collectors cannot harass you, make false statements, or use unfair practices to collect a debt. You have the right to request validation of the debt and can dispute it if you believe it\u2019s incorrect. You can also request that collectors stop contacting you, though this does not eliminate the debt.\n<\/p>\n<p><i>Rachel Christian is a Certified Educator in Personal Finance and a former senior writer for The SS.<\/i><\/p>\n<div class=\"thepe-bottom-of-post\" id=\"thepe-542341488\">\n<div class=\"adBorder\" id=\"thepe-1357411783\">\n<h3>The 8 Best Ways to Earn a Passive Income in 2024<\/h3>\n<p>You\u2019ve probably heard the term passive income. It sounds appealing right?<\/p>\n<p>According to the definition of passive, it would mean you\u2019re earning income without participating or having to do anything at all. Free money? Sign me up!<\/p>\n<p>If you\u2019re interested in establishing a flow of passive income, here\u2019s a guide to understanding the term and getting started.<\/p>\n<p><a href=\"https:\/\/partners.thepennyhoarder.com\/passive-income-desktop-prt\/?aff_id=384\" target=\"_blank\" rel=\"noopener\">Check it out here!<\/a><\/p>\n<\/div>\n<\/div>\n<p>        <!-- ACF Financial Disclaimer --><\/p>\n<p>        <!-- End ACF Financial Disclaimer --><\/p>\n<p>        <!-- Newsletter Signup Form --><\/p>\n<div class=\"newsletter-signup-wrapper-for-digioh\">\n<div class=\"col-xs-12 newsletter-wrap flex-row\">\n<div class=\"container flex-container\">\n<div class=\"col-xs-12 new-newsletter-form\">\n<p class=\"text-subheading\">Ready to stop worrying about money?<\/p>\n<p class=\"text-get-daily\">Get the SS Daily<\/p>\n<p class=\"email-privacy-policy-blurb-white\">\n<\/p><\/div>\n<\/div><\/div>\n<\/p><\/div>\n<p>        <!-- End Newsletter Signup Form --><\/p><\/div>\n<p><script type=\"text\/javascript\" id=\"wp-fcapi-js-before\">\n\/* <![CDATA[ *\/\n!function(f,b,e,v,n,t,s)\n{if(f.fbq)return;n=f.fbq=function(){n.callMethod?\nn.callMethod.apply(n,arguments):n.queue.push(arguments)};\nif(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\nn.queue=[];t=b.createElement(e);t.async=!0;\nt.src=v;s=b.getElementsByTagName(e)[0];\ns.parentNode.insertBefore(t,s)}(window, document,'script',\n'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\nfbq('init', '263664193816679');\n\/* ]]> *\/\n<\/script><br \/>\n<br \/><a href=\"https:\/\/www.thepennyhoarder.com\/debt\/what-happens-when-you-dont-pay-medical-bills\/\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re struggling with unpaid medical bills, you\u2019re not alone. Americans owe an estimated $220 billion in medical debt, according to a 2024 analysis by the Peterson-KFF Health System Tracker. Mounting medical bills can wreck your financial life. They can damage your credit score, make it difficult to pay other bills and demolish your emergency<\/p>\n","protected":false},"author":1,"featured_media":10883,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[221],"tags":[1889,475,739,41],"class_list":{"0":"post-10882","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-debt","8":"tag-bills","9":"tag-dont","10":"tag-medical","11":"tag-pay"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/10882","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10882"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/10882\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/10883"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}