Let’s cut to the chase!
According to a study published in the Journal of General Internal Medicine in 2019, 137.1 million Americans suffered from “medical financial difficulty” in the preceding year.
That’s a staggering figure to consider if you’re currently dealing with unpaid medical bills — this isn’t a problem you’re facing alone. Many others have or are coping with the burden of significant hospital debt, as well as the penalties of not paying it off.
In this post, we’ll talk about the implications of failing to pay your medical bills on time.
- Collectors of Debts
The healthcare provider would most likely submit your account to a collection agency if the balance stays unpaid for a set period – usually 90 days or more. You should anticipate getting numerous phone calls and letters from the debt collector at that moment. You can try to ignore these outreach attempts, but you’ll find it tough because debt collectors are notorious for their persistence.
- Interest and late fees
To the degree that your state allows, your healthcare provider will start putting pressure on you to settle the medical debt by adding late penalties and/or interest charges to your balance. These extra charges might add up to a significant increase in the amount you owe over time.
Review every paperwork you signed before you were treated to see how much you could be charged in interest and fees. Healthcare providers are required to disclose how they manage unpaid amounts, which is frequently contained in the tiny print of your onboarding paperwork.
- Credit damage
Your outstanding debt will be reported to the main credit bureaus by the collection agency. Experian, TransUnion, and Equifax are the three bureaus in question. Before your medical debt appears on your credit record, you must wait 180 days in all three cases.
Your credit score will decline once the waiting period passes and the unpaid obligation becomes part of your credit history. Unfortunately, the effects of a poor credit score can be far-reaching. You can have a hard time getting a new credit card or line of credit, and you won’t be eligible for the best rates.
If the collection agency is unable to persuade you to pay, a lawsuit will be filed against you. The provider’s ultimate goal in suing you is to get a court judgment. After that, the provider might use more aggressive collection measures like liens, wage garnishments, and bank account levies.
- Liens, wage garnishments, and levies
A lien is a claim that a creditor has on your property. Creditors will frequently file liens against your home. This allows the creditor the right to be paid back from the proceeds of the sale of your home. You may find it difficult to refinance if you have a lien on your property.
A wage garnishment is the lawful withholding of a portion of your earnings to pay off a debt that has not been paid. Wage garnishments are limited to 25% of your after-tax income by the federal government, but even that amount can be a significant blow to your household budget.
If you don’t pay your medical bills, you risk losing your credit score, having your earnings garnished, having liens placed on your property, and not being able to maintain any money in your bank account.
If you don’t want to fall into the trap of unpaid hefty medical bills, you must consider Medphine!
Medphine is a dedicated healthcare service provider that provides cost-effective and dependable services that are in line with current industry trends. To learn more, simply visit https://www.medphine.com/ today!