Medical bills can sneak up on you. One day, you’re dealing with a health issue, and the next, you’re staring at a credit report with unexpected charges dragging your score down.
It’s frustrating, but you’re not stuck. You can dispute medical bills on your credit report and potentially get them removed.
Table of Contents
Why Medical Bills End Up on Your Credit Report
Medical bills don’t automatically land on your credit report. When you receive medical care, the provider expects payment, either from you or your insurance.
If the bill goes unpaid for a long time, the provider may send it to a collection agency. That’s when it can show up on your credit report, often hurting your credit score.
Here’s why this happens:
- Unpaid Bills: If you don’t pay a medical bill, the provider may wait 30 to 180 days before sending it to collections.
- Insurance Delays: Sometimes, insurance companies delay or deny claims, leaving you with the bill.
- Billing Errors: Mistakes like incorrect charges or double billing can lead to collections if not caught early.
- Lack of Communication: If you don’t know about the bill (maybe it went to the wrong address), it can slip through the cracks.
The good news? You have rights, and there are steps you can take to dispute these bills and possibly remove them from your credit report.
Step 1: Check Your Credit Report
Before you dispute anything, you need to know what’s on your credit report. You can get a free copy of your credit report from each of the three major credit bureaus: Equifax, Experian, and TransUnion.
Here’s how to do it:
- Visit AnnualCreditReport.com to request your free reports.
- Review each report carefully for medical bills or collection accounts.
- Note details like the creditor’s name, account number, and amount owed.
Pro tip: Check all three reports. Sometimes, a medical bill shows up on one but not the others. If you spot an error, you’re already one step closer to fixing it.
Step 2: Verify the Medical Bill
Not every medical bill on your credit report is accurate. Billing errors are common, so your next step is to confirm the debt is valid.
Contact the medical provider or collection agency listed on your credit report.
Ask for a detailed bill that includes:
- Date of service.
- Type of service provided.
- Amount charged.
- Insurance payments or adjustments.
Compare this with your records, like insurance statements or receipts. If something doesn’t add up (like a charge for a procedure you didn’t have), you’ve got grounds for a dispute.
Step 3: Contact Your Insurance Company
If the bill should have been covered by insurance, reach out to your insurance provider. Ask why the claim was denied or unpaid.
Sometimes, it’s a simple coding error or a missed submission. Provide any documentation, like your Explanation of Benefits (EOB), to support your case.
Here’s a quick checklist for this step:
- Call your insurance company and explain the issue.
- Request a review of the claim.
- Keep notes of who you spoke with, including dates and times.
- Ask for written confirmation if the claim is resolved.
If the insurance company agrees to pay, the medical provider should update or remove the bill from collections.
Step 4: File a Dispute with the Credit Bureaus
If the medical bill is incorrect or shouldn’t be on your credit report, it’s time to dispute it with the credit bureaus. Each bureau has its own process, but you can usually dispute online, by mail, or over the phone.
Here’s how to file a dispute:
- Online: Visit the dispute section on the bureau’s website (Equifax, Experian, or TransUnion).
- By Mail: Write a dispute letter and send it via certified mail for proof of delivery.
- Include Evidence: Attach copies of documents like bills, insurance statements, or payment receipts.
Your dispute letter should include:
- Your name and contact information.
- The account number of the medical bill.
- A clear explanation of why the bill is incorrect.
- A request to remove the item from your credit report.
| Credit Bureau | Mailing Address | Online Dispute Portal |
|---|---|---|
| Equifax | P.O. Box 740256, Atlanta, GA 30374 | www.equifax.com |
| Experian | P.O. Box 4500, Allen, TX 75013 | www.experian.com |
| TransUnion | P.O. Box 2000, Chester, PA 19016 | www.transunion.com |
The bureaus have 30 days to investigate. They’ll contact the medical provider or collection agency to verify the debt. If the debt can’t be verified, it should be removed from your credit report.
Step 5: Negotiate with the Collection Agency
If the bill is valid but you can’t pay it in full, don’t panic. You can often negotiate with the collection agency.
Here’s how:
- Contact the Agency: Call or write to the agency handling the debt.
- Offer a Settlement: Propose paying a portion of the bill in exchange for removing it from your credit report. This is called a “pay-for-delete” agreement.
- Get It in Writing: Always request written confirmation of any agreement before sending payment.
Be polite but firm. Collection agencies may be willing to work with you, especially if you can pay a lump sum.
Step 6: Monitor Your Credit Report
After disputing or resolving the bill, check your credit report again to ensure the changes are reflected. If the bill is still there, follow up with the credit bureau or collection agency. Persistence pays off.
You can also set up credit monitoring to catch future issues early. Many free apps and services track your credit and alert you to changes.
Common Mistakes to Avoid
Disputing medical bills can be tricky.
Here are some pitfalls to watch out for:
- Ignoring the Bill: Avoiding the problem won’t make it go away. Act quickly to prevent further damage to your credit.
- Not Keeping Records: Save all documents, emails, and notes from conversations. They’re your proof if something goes wrong.
- Missing Deadlines: Credit bureaus and providers have time limits for disputes. Don’t delay.
- Paying Without Negotiating: Paying a bill in collections doesn’t always remove it from your credit report. Always ask for a pay-for-delete agreement first.
Your Rights Under the Fair Credit Reporting Act
The Fair Credit Reporting Act (FCRA) protects you when it comes to credit reporting. It ensures credit bureaus and creditors report accurate information.
If a medical bill is incorrect or unverifiable, the FCRA gives you the right to dispute it.
If the bureau doesn’t fix the error, you can escalate the issue or even file a complaint with the Consumer Financial Protection Bureau (CFPB).
New Rules for Medical Bills on Credit Reports
In 2022 and 2023, the major credit bureaus made changes to how medical bills are reported.
Here’s what you need to know:
- Waiting Period: Paid medical collections are removed from credit reports immediately.
- Grace Period: Unpaid medical bills don’t appear on your credit report until they’ve been in collections for at least one year.
- Small Balances: Medical debts under $500 may not be reported at all.
These changes give you more time to resolve issues before they hurt your credit. Stay proactive to take advantage of these protections.
FAQs: How to Dispute Medical Bills on Credit Report
Q. How long does it take to remove a medical bill from my credit report?
A. The credit bureau must investigate within 30 days. If the bill is found to be incorrect, it should be removed shortly after. If you negotiate a pay-for-delete, it could take a few weeks for the update to reflect.
Q. Can I dispute a medical bill if I already paid it?
A. Yes. If you paid the bill but it’s still on your credit report, dispute it with the credit bureau. Provide proof of payment, like a receipt or bank statement, to support your case.
Q. What if the medical bill is legitimate but I can’t pay it?
A. Contact the provider or collection agency to set up a payment plan or negotiate a lower amount. You can also seek help from a medical billing advocate or nonprofit organization.
Conclusion
Disputing medical bills on your credit report might feel overwhelming, but it’s manageable if you break it down into steps. Start by checking your credit report, verifying the bill, and working with your insurance company.
File a dispute with the credit bureaus if needed, and don’t be afraid to negotiate with collection agencies. By staying organized and persistent, you can protect your credit score and avoid paying for errors you didn’t cause.
Take action today, and you’ll be one step closer to financial peace of mind.
Disclaimer: This blog is for informational purposes only and does not constitute legal or financial advice. Consult a professional for guidance specific to your situation.
About The Author
