Emergency rooms can destroy credit
Posted by: info | June 26, 2007
Insurance or not, emergency rooms can be very expensive. Most people can’t afford to pay these high emergency room cost or even their deductible. It makes it harder to dish out a lot of cash since an injury or a trip to the emergency room doesn’t fit the budget. However, careful planning and dedication can help pay down high emergency room fees and expenses.
Hospital bills have some of the easiest and most flexible payment plans in the world. Hospitals allow people to pay minimum monthly payments as long as they’re kept current. This allows patients to pay what they can afford each month. As long as the patient doesn’t default on the payments, by missing a payment, the bill will remain active and current.
If the patient defaults on their payment, then the hospital can send it to collections. Once the bill is in collections, the flexibility goes away. The patient will then have to pay larger amounts each month to keep the bill current. If the bill goes in default with collections then they will report it to the credit bureau. This will lower a credit score and remain negative until it gets paid, for up to 7 years.
The worst thing about emergency room debt is the different companies who bill a patient. Each department or lab has a company in many cases who bill a patient. It is not uncommon to be billed by the hospital, ambulance, transportation, lab work, emergency care and others during an emergency room visit. In fact it is very rare for a patient to get billed by the hospital only. This is why dedication is needed. In order to keep these bills from going on a credit report, a patient must keep each bill current from each company.
Tip: A patient only has to pay what he or she can afford. Don’t get frustrated or overwhelmed. Look at the bill as long term if need be. Also follow up with insurance companies request. Sometimes an insurance company needs more information before they pay off a bill. If they ask for information, make sure to get it to them promptly.
Posted in: Insurance, General |
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