But you get a ridiculous bill, then likely “settle” for a much lower amount of if you’re truly pennyless, you just never pay it and eventually the hospital gives up and uses it as a tax write off.
It’ll also wreck your credit, and if you’re unlucky they’ll sell your debt off to debt collectors to harass you and your family. Even if they’ve died. And then the truly desperate will sometimes commit heath insurance fraud making the system even more immensely fucked for everyone except for the hospitals and insurance companies
Not exactly. Medical debt is different compared to retail debt like credit cards. It still sucks but the rules are different to protect people at least a little bit.
Yep. Medical debt is often not calculated into your credit score by the credit agencies, either, though not in all cases. Or if it is calculated in, it is heavily weighted against so it doesn’t cause much damage.
And it makes sense. Credit score is supposed to be a judge of your credit worthniess based on your history seeking credit and repaying debts. While medical debt is legitimate debt, it isn’t credit seeking behavior in the way an auto loan is. You didn’t choose to take it on, it would be inaccurate to take a trip to the ER into account when determining your credit seeking habits.
I sustained a workplace injury (working on a movie set) and the production company never filed the paperwork, so their insurance would not cover me. I refused to pay the bill and it showed up on my credit report and caused issues for three years. Eventually i found my wrap gift from movie and inside the set medic had put a copy of the paperwork. I scanned it and emailed it to the hospital and within 72 hours it was taken care of and like a month later it was off my credit report. (Time frames may be off as this transpired in 2015)
About five or six years ago, most creditors started using a different FICO model which doesn’t include medical debt. Basically, the idea is that being unable to pay medical debt says very little about how well you can handle debt.
There are also models that don’t consider student loans, but those aren’t used as often.
The big story in my city a while back was a shitty debt collector that stole money from a guy’s bank account.
‘It is like robbery’: A debt collector wrongly wiped out an Oregon man’s entire bank account
According to court records, the debt collector said Salazar owed money for treatment at Providence Portland Medical Center in late 2007 and 2008. Providence claimed it sent 26 billing statements and six financial assistance applications to the home address provided by the patient. The unpaid bills for six emergency room visits originally totaled $4,750 but have since ballooned to more than $14,000 after costs, fees and interests associated with the debt collection.
Salazar tried explaining to Professional Credit Service that he didn’t have the money to pay, but a customer service representative seemed unsympathetic.
“They did not care if my brother is sick and this is going to put us on the street,” explained Salazar. “They did not care.”
In April, Salazar filled out court papers challenging the garnishment. It temporarily froze his bank account, preventing the debt collector from taking any more money. At the same time, it kept Salazar from accessing much needed funds, including his paycheck, which is electronically deposited into the account.
I feel like a lot of people ignore collection agencies when they advise others to “just not pay.” Yeah you could probably get away without paying, but you and your entire family will be harassed nonstop. There’s been few things more chilling to me than a stranger calling me out of the blue with my sister’s name and info telling me to get her to settle up (thankfully just a small amount).
Part of the reason it’s like this is because insurance companies try their very hardest to avoid paying, but that means you have to do the same if paying yourself.
They’ll fix everyone at the ER.
But you get a ridiculous bill, then likely “settle” for a much lower amount of if you’re truly pennyless, you just never pay it and eventually the hospital gives up and uses it as a tax write off.
It’s a shit system
It’ll also wreck your credit, and if you’re unlucky they’ll sell your debt off to debt collectors to harass you and your family. Even if they’ve died. And then the truly desperate will sometimes commit heath insurance fraud making the system even more immensely fucked for everyone except for the hospitals and insurance companies
Not exactly. Medical debt is different compared to retail debt like credit cards. It still sucks but the rules are different to protect people at least a little bit.
Yep. Medical debt is often not calculated into your credit score by the credit agencies, either, though not in all cases. Or if it is calculated in, it is heavily weighted against so it doesn’t cause much damage.
And it makes sense. Credit score is supposed to be a judge of your credit worthniess based on your history seeking credit and repaying debts. While medical debt is legitimate debt, it isn’t credit seeking behavior in the way an auto loan is. You didn’t choose to take it on, it would be inaccurate to take a trip to the ER into account when determining your credit seeking habits.
I sustained a workplace injury (working on a movie set) and the production company never filed the paperwork, so their insurance would not cover me. I refused to pay the bill and it showed up on my credit report and caused issues for three years. Eventually i found my wrap gift from movie and inside the set medic had put a copy of the paperwork. I scanned it and emailed it to the hospital and within 72 hours it was taken care of and like a month later it was off my credit report. (Time frames may be off as this transpired in 2015)
I can’t imagine the mixed emotions you felt when you found that lmao.
About five or six years ago, most creditors started using a different FICO model which doesn’t include medical debt. Basically, the idea is that being unable to pay medical debt says very little about how well you can handle debt.
There are also models that don’t consider student loans, but those aren’t used as often.
Mind you, that is a recent change and there are some places that still illegally do so and it is a pain in the ass to get it removed.
The big story in my city a while back was a shitty debt collector that stole money from a guy’s bank account.
https://www.kgw.com/article/news/investigations/debt-collector-wrongly-wiped-out-bank-account/283-01681963-8fe0-4b44-a57f-c076e4521b22
it’s relatively common for some hospital systems to sue patients for non-payment if their bills are high enough.
I feel like a lot of people ignore collection agencies when they advise others to “just not pay.” Yeah you could probably get away without paying, but you and your entire family will be harassed nonstop. There’s been few things more chilling to me than a stranger calling me out of the blue with my sister’s name and info telling me to get her to settle up (thankfully just a small amount).
I’ve been telling people that the notion that the ER lets poor people die in the US is false; instead, they make you wish you did.
The ER might not let you die but fuck you if you need some sort of medication you can’t afford.
Part of the reason it’s like this is because insurance companies try their very hardest to avoid paying, but that means you have to do the same if paying yourself.