Since September 2013, debt collection has emerged as the primary concern among the complaints we’ve received. Notably, medical debt accounts for 52 percent of all collection accounts on credit reports, significantly surpassing other debt types.
With medical collections affecting an estimated 43 million consumers who have a collection account, its prevalence on credit reports is remarkably high. Our latest analysis delves into the reasons medical debt disproportionately impacts credit reports more than other debt types. Further insights on the impact of medical debt on credit reports can be found in our report.
To manage medical debt effectively, consider these actions:
Examine Medical Bills Thoroughly: Verify the accuracy of each medical bill. If you don’t recognize the provider or the service, request an itemized bill to review each charge. Sometimes, providers billing you may have been part of a hospital’s service without your direct knowledge.
Organize and Document: Keep a detailed record of all medical bills and related documents. For disputes, write to the provider with copies of all relevant paperwork, such as doctor’s notes or payment receipts, but retain the originals.
Ensure Accurate Insurance Information: Confirm that your health insurance details are current and correct. Mistakes in insurance information can lead to unnecessary charges that should have been covered by your policy.
Address Bills Promptly: Settle or dispute any medical bills as soon as possible. Delaying payment or not contesting erroneous charges promptly can negatively affect your credit score.
Negotiate the Amount: Attempt to negotiate the bill amount with the hospital. You might receive a discount for paying in full or be offered the insured rate. Hospitals often have installment plans available at low or no interest.
Seek Financial Assistance: Explore if the hospital offers financial aid or “charity care” programs for those unable to pay their bills. Be aware of application deadlines, as they can vary.
Avoid Charging Medical Bills to Credit Cards: Placing medical debt on a credit card, if you’re unable to pay it off immediately, can accrue high interest and affect your credit as regular debt. Instead, inquire about a payment plan from your medical provider that carries minimal to no interest.
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