Credit.com explains four common misconceptions about medical bills that can cost you dearly:
Myth 1: My Insurance was supposed to cover everything so I’m not responsible
The Truth: It is a consumer’s responsibility to know what they are responsible for paying. A lot of people are under the impression that their insurance was supposed to cover all costs, so they shouldn’t owe. Due to how a visit or procedure is billed with the insurance, this isn’t always the case. It’s always best to be prepared for the worst in this case to prevent anything from being sent to collections.
Myth 2: As long as I am making payments on a medical bill, it can’t be sent to collections.
The Truth: Making payments on a medical bill doesn’t necessarily keep it out of collections. If you’re making small payments, or if you make your payment a few days late when you are under a payment arrangement, you may discover the provider has turned the bill over to collections.
Myth 3: Medical collection accounts are treated differently than other types of collection accounts.
The Truth: Medical providers, such as doctors and hospitals, don’t typically report medical bills. In fact, these bills generally don’t show up on credit reports unless they are sent to collection agencies, which often do report them. And at that point, there is no distinction between medical collections and other collection accounts.
Myth 4: To clean up my credit, I need to pay off medical collection accounts.
The Truth: Go ahead and pay those medical collection accounts if you owe them, but don’t expect dramatic changes to your credit scores. The fact is, collection accounts hurt your credit scores and that’s generally true whether they are paid or unpaid, though as mentioned above, some models may favor collection accounts that have been satisfied.
For more information on the issues surrounding medical debt, please contact RIP Medical Debt.