Do medical bills count as bad credit if in collection?

Yes, they do. i recently checked my credit report and there was a fee i had disputed that my insurance was supposed to cover. even though it was paid, it was still a ding on my credit. i was able to contest the entry and get it removed. Also, once you contest an entry on your credit report, the company who reported you has 30 days to respond. If they dont respond within the 30 days the entry will and must be removed.