Consequences of Not Paying Medical Bills: What You Need to Know

Not paying medical bills can have serious consequences, including damage to your credit score. A single unpaid medical bill can drop your credit score by up to 100 points.

Medical bills can be sent to collections if you don't pay them, which can lead to further financial complications. This can happen even if you're trying to negotiate a payment plan with your healthcare provider.

If a medical bill is sent to collections, it can remain on your credit report for up to seven years. This can make it harder to get approved for loans or credit cards in the future.

Ignoring medical bills can also lead to lawsuits from your healthcare provider or a collections agency.

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Medical debt can be sent to a collections agency like any other debt. If you don't pay your medical bills, the debt can be sent to a collections agency. This can negatively impact your credit score. You may receive calls and letters from the collections agency.

In some cases, non-profit hospitals may be required to provide financial assistance before sending the account to collections. This is a protection for consumers who owe medical debt to a non-profit hospital. However, this is not a guarantee that the debt will be forgiven.

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In Texas, healthcare providers are required to provide specific information to patients before sending their medical debt to a collection agency, as stated in the Texas Health & Safety Code, Chapter 185.

This law is designed to protect patients' rights and ensure they're aware of their financial responsibilities. The Texas Health and Human Services Commission has even issued a guidance letter to help healthcare providers comply with this new law.

If you're struggling to pay your medical bills, it's essential to understand the law and your options. Chapter 11 of Surviving Debt provides valuable information on how medical debt can affect your credit and how to request financial assistance.

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In Texas, there's a specific law that requires healthcare providers to give patients some important information before sending their medical debt to a collection agency.

This law is outlined in the Texas Health & Safety Code, Chapter 185, which is designed to protect patients from surprise medical bills.

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Healthcare providers must provide patients with specific information, including the amount they owe, the name of the collection agency, and the patient's rights.

The Texas Health and Human Services Commission has also issued a guidance letter to help healthcare providers comply with this new law.

Here are the key requirements of the Texas Health & Safety Code, Chapter 185:

Federal Law is a crucial aspect of understanding the requirements for non-profit hospitals. Section 1.501(r)-4 of the Federal Internal Revenue Code requires non-profit hospitals to have a written financial assistance policy.

This policy must describe any collections actions the hospital will take in the event that the patient does not pay their bill.

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Paying medical bills can be overwhelming, but there are resources available to help. You must pay all your medical bills unless you challenge them and win. If you can't pay the bill, talk with your health provider about a payment plan - some providers will accept smaller payments each month.

You can also get credit counseling from a licensed service through the Wisconsin Department of Financial Institutions. However, beware of services that charge high fees without helping you with your debt. Apply for Wisconsin Medicaid or BadgerCare Plus if you qualify - Medicaid may pay for some of your current bills.

Get creative about finding help from other sources - charities, foundations, civic organizations, churches, and other groups may help. The Patient Advocate Foundation lists some fundraising ideas for those with high medical bills. Don't ignore your bills - it's tempting but not a good option, as ignoring a bill can hurt your credit.

Here are some steps to follow if you're struggling with medical bills:

You can also negotiate with your provider to lower your bill. Be proactive, honest about what you can afford, and flexible in finding an option that works for both sides. Many providers are willing to accept a fraction of what you owe if it means getting your debt off their books quickly.

Review your medical bills for errors - medical bill errors are more common than you might think. Request an itemized bill and look for any duplicate or incorrect charges. You can look up Current Procedural Terminology (CPT) codes to make sure they accurately describe the treatment you received.

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If you're struggling to pay your medical bills, don't ignore them. Ignoring a bill can hurt your credit.

You can talk with your health provider about a payment plan that works for you. Some providers will accept smaller payments each month. Get credit counseling from a licensed service, such as one through the Wisconsin Department of Financial Institutions.

You may be eligible for Wisconsin Medicaid or BadgerCare Plus, which can help pay for some of your current bills. Medicaid coverage can start as early as the first day of the month, three months before you apply.

Don't move your debt to a credit card, as most experts warn that this isn't a good choice for paying medical bills. Two main reasons for this are:

Consider getting creative about finding help from other sources, such as charities, foundations, or civic organizations. The Patient Advocate Foundation lists some fundraising ideas for those with high medical bills.