Many Americans think unpaid medical bills won’t count against their credit but this is a myth, your credit score can take a huge tumble if you skip out on those bills.
Will an employee of the Utah AAA Fair Credit Foundation tells KSL-TV “Not only through loans, but through insurance costs as well, even opportunities for employment. Will says underwriters in previous years have cared little about unpaid medical debt but that is no longer the case.
In fact, half of all bill collections occur because of unpaid medical bills. Will believes part of the unpaid bills fall on the difficulties for many consumers to understand their bills. “An individual makes a visit to the hospital, yet they end up with several different bills coming from several different organizations and they don’t know what bill corresponds with what service,” says Will.
Complicating things more is the ongoing battle with insurers dragging their feet to determine if they will cover you, a process that sometimes takes months. Will says this long process contributes to collections. Most doctors will turn your accounts over to collections between 90 to 120 days.
An unpaid medical bill could drop your credit score as much as 100 points. Will says the best way to avoid this happening is working something out with your doctor. Explain your situation and ask if you can start a payment plan. Many times you can work out reimbursement from your insurance afterwards, guaranteeing your credit score won’t take a hit.
