23 Oct Pay Medical Bills

Figuring out what you owe on a medical bill can be confusing at best. You wait for your insurance provider’s explanation of benefits, wait for the bill, and try to figure out what part–if any–is your responsibility. The wait can be months, and by that time the “unpaid” bill may already have tarnished your credit score.

Even consumers with good insurance coverage can have trouble figuring out what they owe after a visit to a doctor’s office or emergency room–which can generate multiple bills. And as consumers become responsible for more medical-associated costs, billing gets more complex. The Consumer Financial Protection Bureau (CFPB) released research in April of 2024 showing that 15 million Americans have medical bills on their credit reports. Collectively, they have more than $49 billion in outstanding medical bills in collections.

People often don’t realize their credit has been stained until they want to obtain or refinance a mortgage. A tainted score can mean having to pay big bucks–often thousands of dollars more than someone with good credit would pay–in a higher interest rate. People with formerly spotless credit histories could see their scores drop by 100 points or more if unpaid medical bills show up on their reports.

Avoid medical bill missteps by keeping a close eye on your credit report and being proactive in credit matters, suggests PrivacyMatters.com:

• Don’t ignore paying a medical bill–Even if it’s for a small amount, ignoring a bill can tarnish your credit score. If you have questions about what you’re responsible for, contact your insurance provider.

• Be an informed patient–Request copies of relevant paperwork from your medical provider and insurance company. Pay all bills that you’re responsible for on time.

• Stay on top of your credit report—Check out AnnualCreditReport.com. You can now pull your credit reports weekly. This site has all the information you need to keep yourself up to date and protect your credit.