Starting September 15, 2017, two major changes will take effect to that will benefit consumers if their medical bill was sent to a collection agency.
- There will be a 180-day waiting period before unpaid medical debts can be reported on consumers’ credit reports. Remember, medical debts still can appear on your credit report even though they are paid in full. This is a major change since many healthcare providers that use collection agencies report within 30 days. This gives the healthcare consumer time to pay off their bill.
- Medical bad debts will be deleted from a consumers’ credit reports if a health insurance company pays them. Again, good news. Many healthcare providers will send medical bills to collection agencies knowing the insurance has not paid.
Healthcare providers will tell consumers they do not allow their collection agencies to report to credit bureaus before 180 days. That is not true. Collection agencies and healthcare providers have become very aggressive. The sooner the medical debt is on your report, the sooner it effects your credit score and forces you to pay the bill.