What Happens If I Never Pay My Hospital Bills in Collections?
Living in a civilised country doesn't mean you are exempt from paying medical bills, even if they are in collections. Here's what you need to know about neglecting to pay your unpaid medical debts.
Consequences and Legal Actions
At some point, the hospital will either write off the debt as uncollectible or they will hire a collections law firm to sue you. This can have significant negative impacts, both legally and on your personal life. For example, having medical bills in collections will negatively affect your credit score. Depending on the hospital, they might also decide to limit or deny services for your future medical needs. However, by law, they are required to send you to another area hospital.
It's worth noting that you can negotiate with the hospital to charge off the expense, reduce what you owe, or pay what you can afford until you die to avoid a lawsuit. While the hospital may not sue you, the situation varies by state. For example, if you live in Idaho, the laws there heavily favor creditors, and you are almost guaranteed to be sued. Elsewhere, this is a low probability.
Credit Score and Future Services
Medical bills in collections remain on your record for up to ten years, which can severely impact your ability to obtain credit in the future. This can be problematic when trying to buy a house or a car, as you may be turned down or required to pay a higher interest rate. The lenders will consider you a higher risk of default.
To address this, you can file disputes with the collection agency and threaten to sue them for violations of the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). Often, collection agencies are not willing to engage in lengthy legal battles where they would have to pay legal fees. Most will delete the debt within 5 business days if threatened with a lawsuit.
Stress and Health
While there is no immediate benefit to paying a bill in collections from a credit score perspective, you should always consider the stress and impact on your health as a reason to address these issues. People in America should not be penalized for being sick. Prioritize your health and well-being in making decisions about your medical bills, regardless of legal risks.
Ultimately, the key is to handle your medical bills responsibly. Avoid undue stress and prioritize your health. Remember that staying healthy and productive is crucial, and managing your bills should never cause excessive stress.
Good luck in navigating these challenging financial and legal issues. By taking proactive steps, you can minimize the long-term negative impacts on your financial and health well-being.