What to Do if a Medical Bill Goes to Collections
Check the bill against your insurance, ask for an itemized statement, look for financial assistance, and know how medical collections are reported to credit bureaus. Here's a step-by-step plan.
Quick answer
Don't ignore it, and don't pay immediately. Verify the debt, compare it with your Explanation of Benefits, ask the provider for an itemized bill and about financial assistance, and dispute errors. The nationwide credit bureaus have changed how they report medical collections in recent years, including not reporting paid medical collection debt and certain smaller medical collections.
Steps
- Verify. Ask the collector for written validation of the debt.
- Compare. Match it against your insurer's Explanation of Benefits.
- Get the itemized bill. Look for duplicate charges, services not received, coding errors.
- Ask about assistance. Many hospitals have financial assistance or charity care policies.
- Negotiate or dispute. Correct errors; negotiate a payment plan or settlement in writing.
Insurance problems are common
Bills sometimes reach collections because a claim was denied, processed incorrectly, or never submitted. Contact your insurer and the provider to fix the claim. See how to dispute a claim denial and surprise medical bills.
Your rights with collectors
Federal debt collection law gives you the right to request validation and to dispute a debt in writing. Get any settlement agreement in writing before paying.
Credit reporting
Check your credit reports; see disputing credit report errors and how long negative items stay.
The takeaway
Verify, compare with your insurance records, ask for an itemized bill and financial assistance, and dispute errors. Many medical collections can be reduced or corrected.
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