If youre struggling with unpaid medical bills, youre not alone.
Mounting medical bills can wreck your financial life.
They can damage your credit score, make it difficult to pay other bills and demolish youremergency savings fund.
Ever wonderwhat goes into your credit score? Learn the facts behind that important three-digit number.
So What Happens When You Dont Pay Medical Bills?
You might not want to deal with that bill but avoiding your medical debts can have serious financial consequences.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Well keep it updated as offers changes or expire.
Letting your medical bills linger in collections is a bad idea.
Debt collectors can actually sue you to recover the money.
How Unpaid Medical Bills Impact Your Credit Score
Unpaid medical bills wont hurt your credit score immediately.
But if you ignore them long enough, your score will suffer.
First, your medical provider will need to send the bill to a collection agency.
That could take anywhere from one to six months.
Your credit score impacts many things in your life.
So Why Wouldnt You Pay Your Medical Bills?
Well, some of us cant afford unexpected medical bills.
Medical debt isnt just a problem for the uninsured or underinsured.
The agency found that 58% of bills in collections and on peoples credit records are medical bills.
Check for Errors
You dont want to pay for someone elses mistakes.
As many as80% of medical bills contain errors, so you should makecorrecting billing errorsyour first priority.
Call the hospital billing department or your providers office manager with questions or if something doesnt look right.
Remember: You have the right to demand to know what youre paying for.
This isnt guaranteed to work, but still worth trying.
Start the negotiation process with the medical provider the hospital or doctors office where you got care.
Medical providers may ask for proof of income or other financial statements.
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.
Providers and debt collectors are often willing to negotiate because they rather getsomemoney from you than nothing at all.
If youre 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.
Ask About Financial Assistance Programs
Owe a big hospital bill?
Call the hospitals billing department and see if they offer financial assistance for unpaid medical bills.
Just check that to speak with the billing department within 90 days of getting the bill.
(It used to be six months).
This rule went into effect January 2022.
Get Outside Help
Medical bill advocate organizations can help negotiate bills on your behalf.
They can also detect billing errors the average patient might miss.
Medical bill advocates come at a cost, though.
Two major medical billing advocate organizations include thePatient Advocate FoundationandMedical Billing Advocates of America.
Understanding these protections can help you navigate the complexities of medical debt more confidently and secure your financial well-being.
Begin 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.
Mention any financial hardships and be prepared to negotiate firmly but respectfully.
Are there any programs available for medical debt forgiveness?
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.
How does unpaid medical debt affect my credit score?
Initially, unpaid medical debt wont impact your credit score.
What should I do if my health insurance does not cover a medical bill?
First, 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-connection charge protections if applicable.
How can I protect myself from surprise medical bills?
Understanding your rights under this act can help you dispute any surprise bills you may receive.
Can medical debt be included in bankruptcy?
Consulting with a bankruptcy attorney can provide guidance on whether this is a suitable option for your situation.
What are my rights when dealing with debt collectors for medical bills?
Under 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 its incorrect.
Rachel Christian is a Certified Educator in Personal Finance and a former senior writer for The Penny Hoarder.
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