Facing high medical bills can be stressful, but simply refusing to pay is rarely the best option While you may feel justified not paying a bill you feel is unfair, there can be serious financial and legal consequences for not paying your medical bills. In this article, I’ll go over what can happen if you refuse to pay a medical bill, and better ways to handle unaffordable medical debt.
Overview of Potential Consequences
Here are some potential consequences if you refuse to pay a legitimate medical bill
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Damage to your credit score and credit report if the unpaid bill is sent to collections or reported as a delinquency. This can hurt your ability to get loans or credit cards.
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Continued billing and collection calls or letters demanding payment This harassment can be stressful
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Potential lawsuit from the health provider to recover the unpaid amount, resulting in wage garnishment or liens if they win a judgment.
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Loss of access to care from that provider in the future, which is problematic if they are the main hospital or doctor in your area.
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Higher costs for medical services in the future as providers pass on uncompensated costs to other patients.
While it may seem easy to ignore medical bills in the short term, it almost always causes bigger problems down the road. Let’s look at better ways to deal with unaffordable medical debt.
Negotiate with the Provider
If the bill amount seems too high, start by contacting the hospital or doctor’s office to discuss it. Politely ask for an itemized statement and review it for errors. Ask if they can offer a discount for prompt or upfront payment. Many providers are willing to negotiate medical bills and create payment plans.
If errors are found or the charges seem unreasonable, you can dispute the bill and file an appeal. Keep negotiating until you reach an affordable amount. Get any agreed upon resolution in writing before paying.
Apply for Financial Assistance
Most hospitals and clinics offer financial assistance or charity care programs. To qualify, you’ll need to submit income documentation showing you fall under a certain income level. If approved, you may get the bill drastically reduced or even waived entirely.
Non-profit hospitals are required to have financial assistance policies, so always ask billing staff about applying. This should be your first step before considering not paying a hospital bill.
Set Up a Payment Plan
Can’t pay the full amount but want to avoid collections? Ask the provider to put you on an interest-free monthly payment plan that fits your budget. Make sure it’s affordable, and get the details in writing. As long as you make consistent payments, they must refrain from further collection actions.
Seek Medical Debt Relief Resources
For large medical debts, contact nonprofit organizations that assist with medical bills. Groups like RIP Medical Debt use donations to buy and forgive medical debt meeting certain criteria.
Local charities, churches, and social service agencies may also have funds to help pay medical bills for those in need. Eligibility requirements vary.
Consult a Credit Counselor
Non-profit credit counseling agencies can help analyze your full financial situation, negotiate with creditors, and develop a debt management plan. They may be able to get your medical bills consolidated into an affordable monthly payment.
Consider Bankruptcy as a Last Resort
If medical debt is totally unmanageable, bankruptcy may discharge some or all of it. But this damaging option should only be considered after exhausting all other relief options, as it wrecks your credit. Consult a bankruptcy lawyer to discuss if it’s right for your situation.
Don’t Let Medical Bills Go to Collections
If you refuse to pay and ignore communication attempts, medical providers will eventually send the unpaid bill to collections. This leads to the credit damage and potential legal action described earlier.
By taking proactive steps like negotiating, applying for assistance, or setting up a payment plan, you can avoid collections and take control of your medical debt. Communicate with providers and use the resolution options available – refusing to pay should be an absolute last resort. Managing medical bills properly takes work, but pays off by avoiding further financial distress.
Is there financial help or “charity care” for my medical bills?
Financial assistance programs, sometimes called “charity care,” provide free or discounted health care to people who need help paying their medical bills. The Affordable Care Act (ACA) requires hospitals with 501(c)(3) nonprofit status to have programs to provide this care . Some states have charity care laws that also require additional free or discounted care to be provided by hospitals.
Older adults: If you apply for and are covered by the Qualified Medicare Beneficiary (QMB) program, doctors, suppliers, and other providers should not bill you for services and items covered by Medicare, including deductibles, coinsurance, and copayments. If a provider asks you to pay, that’s against the law. If the medical provider won’t stop billing you, call Medicare at 1-800-MEDICARE (1-800-633-4227). TTY users can call (877) 486-2048. If you’re a Qualified Medicare Beneficiary, Medicare can ask your provider to stop billing you and refund any payments you’ve already made.
What if I still owe the bill?
If you still owe the bill or a part of it, here are some options:
- Negotiate the bill down to an amount that you can afford
- Ask if the provider will accept an interest-free repayment plan
- Look for help paying medical bills, prescription drugs, and other expenses. Some nonprofit organizations provide financial help as well as help for drugs necessary for your medical care or even certain medical conditions.
- Be careful about using a credit card or a medical credit card to pay off the bill. There may be high interest and you may lose the ability to negotiate the debt. There may be better options like an interest-free repayment plan.
You also have protections from faulty credit reporting or if you are contacted by a debt collector.
What Happens If You Don’t Pay Medical Bills?
FAQ
What happens if you don’t pay us medical bills?
What is the law on unpaid medical bills in Minnesota?
What to do when a patient refuses to pay?
Can you ignore a medical bill?
What if I can’t pay my medical bills?
Unpaid medical bills can lead to calls from debt collectors, dings to your credit report, and potentially bankruptcy. If you can’t pay your medical debt, you can ask for a payment plan that’s affordable for you, find financial assistance programs, or consolidate the debt. Some organizations offer grants to help you pay medical debt.
What happens if you ignore medical bills?
But if you ignore them long enough, your score will suffer. First, your medical provider will need to send the bill to a collection agency. That could take anywhere from one to six months. Then, the collection agency must try to collect on the debt for a full year before it appears on your credit reports.
Why do people have unpaid medical bills?
According to data from the U.S. Census Bureau, 19% of American households could not afford to pay for medical care they received right away. Households with children are more likely than those without children to have unpaid medical bills. Lack of insurance is one key reason for unpaid medical debt.
What happens if a medical bill is overdue?
You may be contacted by a debt collector if your unpaid medical bill is so overdue that it ends up in collections. Sometimes, you will receive a final warning to pay before the debt goes to collections. Explore these related articles, suggested for readers like you. A debt collector’s job is to get a balance paid in full.
What if I can’t afford a medical bill?
If you’re not able to afford the bill, talk to the medical care provider. Nonprofit hospitals are required by law to offer financial assistance programs, and many other providers are willing to work out payment arrangements. Contact your state or local social services to see if more help is available.
Why are so many people not paying medical bills?
In the U.S., many people are not paying their medical bills because they can’t afford them. According to data from the U.S. Census Bureau, 19% of American households could not afford to pay for medical care they received right away. Households with children are more likely than those without children to have unpaid medical bills.