Medical Bill in Collections? You Have Options.
A medical bill in collections is stressful, but recent changes to credit reporting laws and your legal rights mean the situation is more manageable than you think.
Medical debt credit reporting has changed dramatically
Paid medical debt no longer appears on credit reports. Medical debts under $500 are excluded entirely. You have a full year after a bill goes to collections before it can affect your credit.
You can still negotiate in collections
Collection agencies purchase debt for pennies on the dollar. They are often willing to accept 20-50% of the balance as a settlement. A lump-sum offer with a pay-for-delete agreement can resolve the issue entirely.
Validate the debt before paying anything
Under the Fair Debt Collection Practices Act, you can request written validation of the debt within 30 days of first contact. The collector must prove the debt is valid and that they have authority to collect it.
Nonprofit hospitals may have violated the law
If a nonprofit hospital sent your bill to collections without first offering financial assistance, they may have violated IRS 501(r). This gives you leverage to pull the bill back and apply for charity care.
Take the First Step
Generate professional documents customized to your hospital, your procedure, and your financial situation. Backed by Medicare rates and federal law.