Will an unpaid medical bill damage your credit?

Unpaid Medical Bills Affect on Credit(A shady answer covering both sides)

Because not all situations are so black and white as figures, the answer is probably, but not by any means definately. Lots of times medicare's (especially medicares) system of bililng is so complicated things get lost, for in most if not all states they only have a certain amount of time to bill for the services, many billing departments fall behind because of the aforementioned complications. In conclusion there are many bills that were never "claimed" by any insurance or hospital and went to the wayside and yes I've got multiple examples, but u guys can look those up your selfs.

Here are opinions and answers from FAQ Farmers:

• YES! Here is an example. I was in a car wreck a little bit over a year ago. I was immediately taken to the hospital in an ambulance. At the hospital the ambulance driver came and got from me my drivers license and medical insurance card. The driver inadvertently copied my address and name down wrong due to the rush that she was in to close this file and proceed to the next. The bill was submitted to my insurance company who said: is not a customer of ours. And the address is wrong for the closest match. Letters were sent back and forth via my attorney' office, and the Debt Collection Agency could not get my correct address entered into their system. Long story short no one paid the bill because the collections agency did not change the information in their files to match the insurance company files (would not even call the insurance company, just called me), and the insurance company would not pay because the information did not match a customer of theirs. I am now stuck with a mark on my credit from the collection company, and will probably end up in court over it.

• If the bill was wrong to begin with, any damage to credit can be fixed resulting from the billing error can be fixed.

• This is a procedure which needs to be outlawed. In order to go onto a credit report it needs to be credit. Did you fill out a credit application? How about this, did you know before the service what the total cost would be and how much the payment would be per month? These are bogus entries on a credit report and should not be allowed to be posted on a credit report. By the way health care probably won't tell you up front what the cost is going to be, it will blow their chance of over charging.

• I owe 18,000 in medical bills and I am 23-years-old and can't even get approved for a credit card or a car. I am planning on just waiting out the seven years.

• IN THE LENDING PROSPECTIVE; WHEN YOU HAVE A MEDICAL BILL THAT IS UNPAID THE BEST THING TO DO IS LOOK AT YOUR CREDIT REPORT AND SEARCH TO SEE IF THIS BILL IS A 2006 UNPAID BILL, IF SO THEN DEFINABLY CALL AND PAY THIS IMMEDIATELY. NOW THIS ONLY APPLIES FOR THOSE WHO ARE INTERESTED IN PURCHASING A HOME FOR THIS NEW YEAR. IF YOU HAVE A MEDICAL BILL THAT IS O VER A YEAR OLD THEN DO NOT WORRY ABOUT IT THIS BILL DOES NOT HAVE TO BE PAYED RIGHT AWAY. WHEN YOU ARE ABLE AND READY TO PAY A BILL THAT IS PENDING THEN DO SO.

You can contact the hospital & request a bil reduction based on your income & if you have no insurance or it did not pay all of the bill or sue the other accident partys insurance company for any charges if it was their fault.

I worked for Blue Cross/Bs for more than 12 years . It 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. Secondly, Auto & W-Comp are not "medical bills." The casualty in medical (health insurance) is waaaaaaaaaaaaay different legally than auto insurance. If you agree to pay $5 a MONTH, YES $5 a month , it will not effect your credit at all (medical). This is "written in stone" as legal. Basically, the object is to bury the health care professional in paper and offer you a HUGE discount. Take case in point you have a bill because either you do not have health insurance (NON AUTO/COMP CASUALTY) and/or you DO have it but have a high deductible. The bill for an MRI is $1000 . The insurance company will calculate the 'eligible amount' if you have a deductible the 'allowed amount is reported on a EOB (explain/bene) and to the provider of the amount you owe. If you are unable to pay it in full.. $5/mo. Now, consequently , if it's three years from the Date of Service, its a collections issue. Depending on the amount,it CAN go to reported credit due to you being irresponsible in not making a deal. Even if you call the provider and tell them you have a financial issue (especially facilities/hospitals make agreements) you may want to look into charity care or look into your state's programs to see if you can get assistance. There are sooooooooooooooo many scenariOS the question asked here is too broad of a topic...