A study published in 2019 in the Journal of General Internal Medicine found that 137.1 million Americans had experienced “medical financial difficulties” the year before.
This is a staggering number to consider if you are currently facing unpaid medical debt. You’re not the only one who has this problem. There are many others who have significant hospital debt and the consequences of not paying them off.
This post will discuss the consequences of not paying your medical bills in a timely manner.
- Debt Collectors
If the account balance remains unpaid after a certain period of time – usually more than 90 days – then your healthcare provider will likely send it to a collection agency. At that time, you can expect to receive numerous phone calls or letters from the debt collector. Although you can ignore the outreach efforts, debt collectors will not give up.
- Late fees and interest
Your healthcare provider may start to put pressure on you by adding late fees and/or interest to your balance, to the extent that your state permits. Over time, these extra charges could add up to a substantial increase in your debt.
Check all the paperwork you signed prior to your treatment to find out how much interest and fees you may be charged. In the small print of paperwork, healthcare providers must disclose their policy on unpaid balances.
- Credit damage
The collection agency will report your outstanding debt to the major credit bureaus. The three credit bureaus that are in question are Experian TransUnion and Equifax. In all three cases, you have to wait 180 days before your medical debt will appear on your credit report.
Once the waiting period has passed and the unpaid debt is added to your credit history, you will see a decline in your credit score. A low credit score has many negative effects. A low credit score can make it difficult to get a credit card or a line of credit. You may also not be eligible for the lowest rates.
- Lawsuit
In the event that you are unable to pay your debt, a lawsuit may be filed. In suing you, the provider wants to obtain a court judgment. The provider may then use aggressive collection methods like wage garnishments and bank account levies.
- Levys, wage garnishments, and Liens
A lien is the claim of a creditor on your property. Creditors often file liens on your property. The lien gives the creditor the option to receive payment from the proceeds of selling your house. If you have a lien against your home, it may be difficult to refinance.
Wage garnishment is the legal withholding of part of your income to pay off an unpaid debt. The federal government limits wage garnishments to 25 percent of your income after taxes, but that can still be a big blow to the household budget.
This post was written by Physicians Choice Medical Billing, LLC. https://physicianschoice.biz/ has been providing exceptional, and comprehensive Full-Service Practice Management including medical billing, coding, revenue cycle management, credentialing and consulting services to our clients. Whether you are a new startup or an established medical group, PC has the experience and dedication to make your practice a financial success. The staff bring multiple years of experience and dedication. Fingerprinting in Tampa and Fingerprinting in St Pete with Physicians Choice provides the highest quality, professional digital Live Scan fingerprints in a comfortable professional office atmosphere. Physicians Choice offers both individual and corporate account service.