Will an unpaid emergency room bill keep me from being able to buy health insurance, OR hurt my credit rating?

Question

I have an emergency room bill which I have not yet paid and I'm wondering if it will keep me from being able to buy a health insurance policy and if the unpaid bill hurts my credit rating. The letters they send says it will hurt my credit rating, but most people tell me they're just trying to scare me and that ER bills don't hurt your credit rating. Anybody here know for SURE?

Answer 1

Yes, eventually that unpaid medical bill will go into collections, and it CAN hurt your credit rating.

It will have no bearing on you getting health insurance, though.

Answer 2

If the unpaid ER bill is reported to one or all of the three credit agencies, it absolutely hurts your credit score. If their letters state that non-payment will affect your credit score than they ARE submitting this negative information to the credit agencies.

If the unpaid ER bill, was sent to a collection agency that will further hurt your credit score. If possible, set up payment plan. Most hospital are reasonable if you contact them and make an effort to show good faith in paying what you owe. Paying the bill over time is better for your credit score than having the bill go unpaid indefinitely. If you agree to pay $20, don't miss a payment. You have given your word that you accept responsibility for the debt so meet your obligation. If you simply cannot pay the bill, contact them and let them know you cannot pay. If you are low-income eligible, you might be able to obtain financial assistance in paying the bill. If you contact the hospital, they normally help with these applications but if you have let this bill go unpaid for a long period of time they are less likely to be helpful.

Depending on the amount owed, they could take you to court, obtain a judgement against you and garnish your wages if you are employed.

The unpaid ER bill will not affect your eligibility when applying for health insurance. The billing department is separate from the medical records department. However, when you applying for individual health insurance you will have to complete a medical questionnaire. (If you are working and your employer offers health insurance you typically do not have to complete a health questionnaire.) You must reveal that the specifics of your ER visit and provide the name of the hospital so they can obtain your medical records. Depending upon the need for the ER visit, you would be denied coverage as result of a medical condition or have to wait 12 months before the condition is covered. If you aren't completely honest on the application and the company learns of this your policy will be canceled for falsifying the application.

Answer 3

Yes it hurts your credit rating. I had an unpaid hosptial bill of over $9,000 when I had no insurance. Any account in collections is going to hurt your credit rating. They may not sue you (although they generally threaten to), as they never sued me (I really didn't have any money), but I'd strongly suggest to call them and make some sort of payment arrangement with them, even if it's only a tiny amount each month. That should keep you current and out of collections.

Answer 4

Yes, an unpaid medical bill can hurt your credit rating. If the hospital reports it to one (or all) of the 3 major credit reporting agencies, it will lower your credit score just like any other item in collections would.

Answer 5

Medical bills will criple your credit as they are some of the most aggressive collections out there. I suggest calling the billing party and getting on a payment plan.

You should not have an issue with securing insurance with bad credit. This is not criteria they are currently looking at.

Answer 6

Yes it hurts your credit. I see it all the time with ppl trying to get credit for a house. Unpaid medical bills do not go unnoticed...

Try to call the hospital or billing company and work out a lower monthly payment with them, something you can afford.

You don't wanna ruin your credit, b/c it will totally control every financial decision you make later. (I had a client that had to rent a very unsightly home and pay double deposit just b/c of bad credit.)

Answer 7

Good Question. I never pay the Emergency Room Bills, and I never got anything saying I have to. I now also have Health insurance too, and they cover all the costs.

Answer 8

It should have no bearing on whether or not you can get health insurance in the future.

BUT if they send your account to an outside collection agency - and if you don't start making payments, they will, if they haven't already - it can and will hurt your credit. (It's the same thing as if you default on a loan or credit card.) It gets reported to any or all three credit agencies.

Answer 9

Why worry? Just contact them. Explain the bill is too much for you to cover entirely, however you can pay 1/3 in $50/month installments. Cut a deal.

Answer 10

if they send to a collection agency it can hurt your credit but it will not stop you from getting health insurance