• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

Paying for Medical: What Happens If You Don’t Pay Medical Bills?

By Tex Freitag

More than 130 million people in the US are currently struggling with medical debt and bills; in fact, surveys show that 1 in 6 Americans have past-due medical bills.

There are many reasons why people struggle with medical debt. Some people are unable to work because they’re sick or injured. Others may not have any savings to help them weather an unforeseen medical emergency.

Unfortunately there are consequences for those who don’t pay their medical bills. Here are five of the biggest — and an overview of how to recover from them:

You Will Get Phone Calls

Companies will try to reach out for you to get the payment or work something out. Typically the companies will call your phone several times a week on a random number and not leave a voicemail; but it’s best to answer these calls because they can provide insight into what additional actions they may take if you don’t pay.

You’ll Receive Warning Letters

If phone calls are unsuccessful the medical facility may make a final effort before sending your account to collections; the letters usually contain information on the debt owed and when the charges were put onto your account. The letter will also note when your account will be sent to collections. There is typically a 180-day waiting period before your bill is sent to collection agencies, but it can happen anytime after 30 days.

Be sure to review the due date for your payment, and make any calls if you think the charges are incorrect. It is quite common for people to find billing errors that lead to more debt.

Your Bill Will Be Sent to Collections

Once your account has been sent to a collection agency they’ll either own the debt or not. If they don’t own your debt, then you can make payments to the original business.

If the collection agency ends up owning your debt you’ll have to go through them to get your medical bills taken care of. Collection agencies can come after you for up to six years after the last payment was made; not paying collections could result in you being sued. Also, once your account has been sent to collections, the medical facility has the right to refuse treatment and office visits until you pay.

Your Credit Score Will Dip

When you don’t pay your medical bills, your credit score can be negatively impacted for years. A low credit score results in higher interest rates for your credit cards and loans. Not having a good credit score from unpaid medical bills may also put you at risk of getting your cell phone contract canceled. You could also get denied from a job too; this is because many companies run credit history checks.

You Could Be Sued

When all else fails, companies may try to recover the debt by suing you for wage garnishments. The good news is you can’t be sent to prison for being unable to make payments. Ironically, going to court can be beneficial, as sometimes the court and the plaintiff may agree to accept payment via an interest-free payment plan.

The Next Steps

If your medical bills are piling up, then it’s important to take a step back and get organized. Check the charges on those bills to verify that they’re accurate and up-to-date.

What you shouldn’t do is ignore your bills and pretend they don’t exist.

If you can’t pay, then contact the company and try to set up a payment plan. Many people recommend using MedicareWire.com for financial assistance in times of need; this site can help you find medical insurance coverage and pay for part of your prescription costs.

Of course, you can also get help by applying for a personal loan. And always be sure to check out potential government resources that may be available for you.

Photo Credit: stock photo

1 Comment January 24, 2020

Comments

  1. 1

    Ed says

    Thanks for sharing this.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Question of the Week:

Are you expecting an income tax refund this year?

View Results

Loading ... Loading ...

Recent Posts

  • Black Coffee: Painting the Town Red
  • 5 Ways the Oil Industry Affects the US Economy
  • An HVAC Professional Teaches High School Students About the Field
  • The Fastest Way to Improve Your Credit Score
  • How to Determine How Much Rent You Can Really Afford
  • A Simple Test to Know If It’s Better to Rent or Buy a House
  • Black Coffee: Enter the Dragon
  • How to Measure Your Performance as a Trader or Investor
  • 4 Strategies to Help You Avoid Bankruptcy
  • The Best Personal Finance Book I’ve Ever Read

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 30,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!

Popular Now:

  1. 1. My 10 Commandments of Personal Finance
  2. 2. Planning a Wedding? Here Are 9 Ways to Ensure You’ll Pay Too Much
  3. 3. 5 Things Nobody Tells You About Being Poor — for Good Reason
  4. 4. 10 Red Flags That May Signal You’re In Serious Financial Trouble
  5. 5. 4 Good Reasons Why Some Quarters Are Painted Red
  6. 6. Careers You Can Get Into Later In Life
  7. 7. 8 Store Brand Items That Are Superior to Their Name-Brand Twins
  8. 8. Caught Ya! My Teenager’s Sly Attempt to Get His Own Credit Card
  9. 9. 6 Common Mistake People Make With Their 401k Plans
  10. 10. 6 Career Killers — and How to Avoid Them

All-Time Most Popular:

  1. 1. 19 Things Your Suburban Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending You the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2021 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

Copyright © 2021 · Penzo on Genesis Framework · WordPress · Log in