Medical bills are a part of life, and while many of us wish we could avoid them, there are times that medical care is simply necessary. From time to time medical bills are left unpaid. This is detrimental not only to a health care practitioner and their practice but also to the patient who has missed payments. Entering medical bill collections in Sarasota reflects poorly on your credit score and could be problematic in the future.
Wondering how much your missed bill is impacting your credit? Here are a few things you should know about credit scores and medical bills.
Not all Bills are Equal
As far as your FICO score is concerned, different bills carry different weights when it comes to your credit score. For those with medical bills under $100, the impact shouldn’t be too hurtful to your overall score. However, anything above $100, and you could be left without the ability to successfully obtain a loan, mortgage, or credit card.
The most recent, FICO 9 model isn’t too harsh on paid collections or medical collections. This means if your medical bills do find their way into collections, paying your way out may not look so bad on your score.
It’s also important to note that medical bills from less than 6-months ago, we view with less urgency than those with longer missed pay dates.
Is Your Insurance Provider Refusing To Cover Cost?
Remember, the most significant factor that affects your credit score is payment history. If your medical bills make there way over to a collection agency, odds are the unpaid bill already showed up on your credit reports. Collections will remove the unpaid bill from your credit report if an insurer agrees to pay the bill. Still, not everyone’s fortunate enough to have insurance.
So what should you do if insurance doesn’t want to help pay costs? The way they bill you depends on a few different factors. However, there really isn’t much you can do about getting the unpaid bill off of your credit report without the help of insurance.
Remember just to maintain good credit habits such as paying a bill on time.
Minimize the Impact of Medical Billing Collections on Your Credit Score
If you do find yourself in medical bill collections in Sarasota, there are a few ways to improve your chances at a speedy recovery. Here are some suggestions from the staff at Accelerated Medical.
Don’t Stop Making Payments – Even if you can’t pay the full amount of your bill on time, we suggest continuing to make payments when you can. Keep abreast of your current bills and be vocal with your debtors to keep these bills in good standing as long as possible.
Double-Check Your Bill for Errors – If a bill seems high to you, go with your gut and double-check. Ask for an itemized list of treatments and their reflected costs.
Request a Copy of Your EOB – An EOB, or Explanation of Benefits, tells you which treatments have been paid for by your insurance. Knowing what portion of the bill is paid and that your medical provider is aware of this, is helpful in establishing future payments.
Haggle Your Debt Down – Unlike bills in good standing, collection debts are often negotiable. Why? Because your debtors want to get back their investment as quickly as possible. Work with collections to reduce your overall debt to a more manageable figure.
These are a few of the ways to cope with your debt after it’s been accumulated and sent to collections. There are also ways to minimize the risk of going into collections in the first place.
Avoid Medical Bill Collections in Sarasota
Apart from managing your debt to escape medical bill collections in Sarasota, you can also avoid them altogether. Overcome the potential for collections by:
- Knowing exactly what your insurance plan covers
- Checking with work to determine how much your benefits cover
- Working with your medical practitioner to develop a payment plan
As a local company serving many health organizations in Florida, Accelerated Medical understands the intricacies of insurance and medical billing better than most. To learn more about our services, contact us today.