| The real pain of a hospital stay might not hit until long | | | | months after your care was completed. |
| after you're finished with medical care. Medical bills and | | | | If you have insurance, the complexity of medical bills |
| your credit interact in complex ways, and medical bills | | | | increases, because now all of the paperwork is routed |
| can have serious repercussions if you don't keep a | | | | through your insurance carrier. In the byzantine world |
| close eye on your credit score. | | | | of hospital billing, the natural delay caused by dealing |
| Medical bills and your credit report | | | | with the middle man, your insurance company, may |
| Utility companies, landlords, and lenders are the three | | | | cause portions of your bills to be sent to collections. |
| primary sources of information that affect your credit | | | | Even an insured person can suffer a lower credit |
| report. Late payments and missed payments may | | | | score because of a medical bill. |
| damage your credit rating, even if you've never had an | | | | The future: Medical credit scores |
| unpaid bill go to a collection agency. | | | | Until recently, medical bills only affected your credit |
| For other types of debt, late payments or missed | | | | history if they were sent to a collection agency. |
| payments only show up on your credit score if the | | | | However, the Fair Isaac Corporation is pairing with |
| debt is sent to a collection agency. | | | | several other investors to develop a system to |
| Therefore, the only way that a bill can affect your | | | | determine a discreet medical credit score. |
| credit score is if an unpaid bill is turned over to | | | | The system, dubbed medFICO® by critics, would |
| collections. Should that happen, the collection agency | | | | track payments made by patients receiving medical |
| reports the case to one or more of the credit bureaus. | | | | care. Based on that information, hospitals and other |
| Once the agency makes its report, the black mark | | | | healthcare providers would be able to evaluate the |
| remains on your credit report for up to seven years, | | | | likelihood of each patient's non-payment. |
| just as if it were any other unpaid bill. | | | | This medical credit score is controversial, and critics |
| How medical bills and credit collide | | | | are quick to point out potential flaws, should the |
| The current credit system doesn't differentiate | | | | system go into general use. Privacy issues, the |
| between defaults on medical bills and other credit | | | | opportunities to violate the Health Insurance |
| mistakes. When lenders look at your credit report, | | | | Accountability and Portability Act (HIPAA), and medical |
| they'll see a collection action on your record, not the | | | | identity theft are just a few of the potential difficulties |
| reason for the collection action. | | | | forecasted. |
| The problem with hospital bills and credit is caused by | | | | To protect your credit history from medical billing |
| the healthcare system's billing practices. After you | | | | errors, request a copy of your credit score, and check |
| receive care, you may not be billed for all services at | | | | for credit mistakes caused by unpaid medical bills on a |
| once. Instead, you receive partial bills from different | | | | regular basis. Just as it is with your health, early |
| departments within the same hospital. For example, | | | | detection of errors on your credit report can help |
| you may not be billed for preliminary lab work until | | | | prevent unwanted consequences. |