Advice on medical bills

Key Points to Consider:

  1. Impact on Credit Score

    • Medical bills don’t show up on your credit report immediately; they only appear if they go to collections.
    • Even then, credit bureaus often give you 180 days (6 months) after the bill is sent to collections to resolve it before it impacts your credit score.
    • The good news: FICO 9 and VantageScore models (used by many lenders) weigh medical collections less heavily than other types of debt and remove them from your report once paid.

  1. Options to Manage the $900 Bill

    • Negotiate a Discount: Contact the doctor’s billing office to explain your situation. Many providers offer discounts for uninsured patients or those experiencing financial hardship.
    • Ask for a Payment Plan: Providers often allow small monthly payments (e.g., $20–$50) to keep the account in good standing, avoiding collections.
    • Charity Care or Financial Assistance: Some hospitals and practices have programs to reduce or forgive bills for uninsured or low-income patients. Ask the billing office if you qualify.
    • Appeal the Bill: Request an itemized bill and check for errors or unnecessary charges. If the charge seems unfair, dispute it with the provider.
    • Medical Debt Relief Services: Nonprofits like RIP Medical Debt or local charity programs might assist with your bill.

  1. If Collections Becomes Unavoidable

    • Prioritize Essential Expenses: Focus on rent, utilities, food, and existing debts first.
    • Plan for Collections: If you can’t pay and the bill goes to collections, start saving to settle it later. Collection agencies often accept lower lump-sum payments.
    • Monitor Your Credit: If the bill goes to collections, it may lower your credit score by 20–50 points initially, but the impact fades over time, especially if you resolve it.

  1. Longer-Term Solutions

    • Emergency Medicaid: If your state allows it, retroactive Medicaid might cover past bills within 3 months of the injury. Contact your state’s Medicaid office to inquire.
    • Income-Driven Repayment for Government Debt: For the $1,600 government bill, ask about hardship or income-based payment options to ease monthly payments.

What Should You Do?

  1. Contact the Doctor’s Office Immediately:

    • Request a discount or payment plan. Even a small monthly payment can prevent the bill from going to collections.

  2. Review Financial Assistance Options:

    • See if you qualify for any charity or hardship programs to reduce or forgive the bill.

  3. Avoid Ignoring the Bill:

    • While letting a bill go to collections won’t ruin your financial future, it’s better to exhaust all other options first to protect your credit.

Taking proactive steps now will help you manage this bill without long-term financial damage.