healthcare debt collectionIn short: probably, but it’s more complicated than that. No situation is black and white and there are many variables in every scenario, but the healthcare debt collection is system is so complicated that sometimes things simply get lost. Yes, really.

Most states have laws limiting the amount of time to a person can be billed for medical services, making it hard for billing departments to keep up without falling behind on debt collections.

Still, credit scores are important numbers that affect our ability to get loans and credit cards. They are the first thing lenders and banks look at when they want to know if you are a responsible and trustworthy business partner. Most American consumers are familiar with basic credit scoring principals.

For example, paying bills late will be viewed as a negative while reducing debt is considered a favorable action. There are many other variables that are considered when calculating a credit score. It is important to understand how different situations affect your score in order to make the best decisions to improve your score. Here are some tips for people dealing with healthcare debt.

  • Medical bills cannot effect your credit if you agree on a settlement that incurs income on your taxes, however much is “written off” for the balance due.
  • Paying off a small amount of the bill every month – it can be as little as five dollars – will have no effect on your credit and you’ll be safe until the next healthcare revenue cycle.
  • If a bill is inaccurate, any damage to credit can fixed after the bill is proven to have been wrong.

In the end, there are many bills that are never “claimed” by any insurance or hospital and go to the wayside and, yes, there are multiple examples to prove this. Playing or delaying payments on medical bills can be risky for credit scores, but as mentioned above, there are many ways to avoid future financial harm while neglecting to pay absurdly high medical bills.