medical bills hitting credit report

[zach]

i have some medical bills hitting my credit report, there are from the time i was ssi/medicaid and while i've been on ssd but still in the waiting period for medicare

should they be? any advice here beyond the obvious? (ie: pay your damn bills)

[Jeff G]

It will fall off your report in time … it did mine and I now have good credit again .

[initforlife]

Zach I have same thing. from where I was in the hospital for my PE and DVT. but I got approve clear back for those days for Medicaid and it should have paid all of my bills but with Medicaid way behind in paying bills it didn't happen on my credit report they are there but also said disputed charges or something like that. meaning it all should have been paid by Medicaid and wasn't. anyway Jeff is right in the long term it will be gone . but short term does cause some problems...I could pay it  but the point is it was suppose to be paid already if they would have just sent the damn bill back in to Medicaid. I'm also in the two year period for medicare. Work hard all your life and built your credit up to where it was and get sick and no insurance you are so Screwed! 

[bocker3]

i have some medical bills hitting my credit report, there are from the time i was ssi/medicaid and while i've been on ssd but still in the waiting period for medicare

should they be? any advice here beyond the obvious? (ie: pay your damn bills)

Medical bills impact lots of credit reports -- they also are one of the leading causes of personal bankruptcy (maybe even the biggest cause), which would also be a BIG hit on a credit report.
You do have the ability to add a note of explanation -- not sure of the process, the Credit Bureau would have to assist you with that.  If these bills are there because of a SSI/Medicaid issue, that explanation might be helpful.
Of course, any explanation still won't change the bills impact on your Credit Score, which is what most lenders pay the most attention to anyway.  Though I think I've read that there is a push for or will shortly be changes that lessen the impact of medical bills on Credit Scores.  I can't track down info right now, but I'm sure that I didn't dream that.
Finally -- even if you pay the bills -- it won't guarantee that the entry on your report will come off.  You can ask the company that put the bill there if they would remove it (not the Credit Bureau, but the Hospital, Collection Agency, etc) when the debt is paid.
Generally, an entry on a Credit Report lasts for either 7 or 10 years.

M

[zach]

yeah, drop off date is 2021... long time to go without credit

looks like buying a car, even off a buy here lot, is going to be difficult

ah well, life goes on

[tednlou2]

I also read FICO will start (if not already) to count medical bills to a lesser degree, as far as the score is concerned.  However, I've learned many lenders (home and car) use other scores, besides just FICO.  When we bought our truck, they used some score calculated just for auto lenders. 

I have disputed items.  If they don't respond within 30 days, they are removed.  I have good credit now, by paying off bills, paying bills on time, as well as contesting items.  I have had several removed, by just contesting them.  Even if I owed the medical bill, I contested it.  I didn't feel one bit wrong in doing it, since I don't believe medical bills should ruin your credit.  Yes, I am rationalizing what I did, but I don't feel guilty about doing it.  A credit card I ran up would be a different story.  If the bill is on all three, you just have to contest with all three.  They make it easier now, with being able to do it online, instead of having to mail in a form.

[intaglio]

If the healthcare provider accepted Medicaid and everything else for which you were eligible at the time, check with your Medicaid manager to verify that all benefits were paid. Also verify that the healthcare provider wrote off everything they were required to as a condition of accepting Medicaid. What you find out here could be used to dispute the accuracy of your credit report -and get the negative item removed.

If all this has occurred, and there are still outstanding balances, contact the healthcare provider to see if they have programs you are eligible for that reduce or even eliminate the remaining balance. Hospitals and other institutions receive tax breaks for providing services to low-income individuals. They usually have on staff a patient advocate that helps patients navigate all the forms and documentation required. You may be able to get the remaining balance written off -and then be able to request the healthcare provide update the credit bureaus with accurate info showing you did not owe the balance after all.

If you've exhausted all these, then you might want to negotiate a settlement/repayment plan with the provider. If you do this, part of the negotiation would be that your credit report would be updated to show the bill as on-time and being paid.

If you have no hope of repaying the bills, let them go. In most states, as long as one is judgement-proof ie. below the level of solvency in which collections can be achieved, you'll be threatened with legal action, but none will happen.

If you've been able to keep a credit card through all this, you can use it to maintain your credit. If you're back at square one with zero credit, you can still obtain secured loans. You're just going to have to have a larger down-payment and expect to pay higher interest rates. Credit unions will work with members with damaged credit far more readily -and far more fairly -than any buy-here-pay-here extortion site.