Collection accounts, by practice and by the score calculating systems, are considered to be bad and thus, have a negative effect on your credit score. Medical collection accounts are normally different in nature from your telephone bills or internet bills. Non-payment of medical bills is considered to be one of the biggest mistakes that you can make to ruin your financial credit report card. Even if the fault is not yours, you are the one who suffers. Therefore, follow the tips given below to ensure that your unpaid medical bill is not handed over to collection accounts.
1. Check with the Hospital
Cases have been reported when people have been moved from their regular flexible payment plans to Collection accounts for not paying their hospital bills. These bills may include regular visits or any other medical services that you avail. People tend to miss on the pending payments believing that the flexible payment scheme is still avialable to them and on non-payment of bills their account is handed over to the collection department. Collection accounts have a negative impact on your score. Since you might fall a victim to this without your knowledge, it is best to check with your hospital from time to time about the payment plans. You will find yourself in a situation where the hospital will not help you out and the Credit Rating Agencies will reject your requests to clear these accounts from your report.
2. Check With The Insurance Agency
When you take out an insurance, talk to them about the fine print. Many cases have been reported when the hospital bills the insurance agency that refuses to make the payment on one ground or another. You are left holding the bills and if you do not pay then it is sent to collection. As a result, your credit report and score suffers. The only way out is to talk to the hospital and the insurance agency. Pursue it doggedly till you get results. Meanwhile, as the responsibility of the payment lies with you, you must make the payment to avoid collections and then pursue it.
The Medical Debt Responsibility Act of 2011, which is in the pipeline, if passed, will instruct all Credit Rating Agencies to go soft on these medical collection accounts. According to this law, the medical collection accounts will not be shown on your credit report beyond a period of 45 days, if the due amount is less than $2500. Meanswhile the best to do will be to keep your eyes open about the payment scheme you have subscribed to with your hospital and never be late on your outstanding bills payment.