Have you ever thought what happens if you don’t pay medical bills?
The cost of medical treatments and medicines is extremely high, and sometimes, it becomes the cause of trouble for patients who are already facing injury and illness. However, many financial and legal actions occur when patients ignore hospital bills.
Below, we will discuss the effects of not paying hospital bills. Texas residents need to understand the effects of avoiding medical payments.
Why Do Medical Bills Go Unpaid?
The United States provides medical services at higher price levels. People who have insurance still face an accumulation of deductibles and copayment expenses. They also have to face the costs of out-of-network providers. Therefore, thousands of dollars in hospital bills become unaffordable for numerous patients after getting sick suddenly.
This situation and uncertain finances cause some people to postpone making their medical bill payments. Some patients hold onto the bills and expect that medical aid and financial support will provide help.
What Happens If You Don’t Pay Hospital Bills?
Hospital and healthcare organizations normally follow these specific actions after customers fail to make payments:
1. Follow-Up Notices
When you initially receive your hospital payment reminders, you start to see both correspondence letters and phone calls requesting payment. These first notifications come from hospital billing staff.
2. Late Fees Added
Your hospital bill amount will increase because the healthcare provider will apply late fees and interest charges when you fail to make payments.
3. Unpaid Debt Will Be Sent to Collections
Most hospitals typically transfer medical bills that stay unpaid for a period of 90 to 180 days to collection agencies. The collection agency will begin getting in touch with you with regular and often repetitive communication.
4. Your Credit Score Can Take a Hit
Collection agencies report unpaid debts that lead to credit report appearance. The existence of outstanding medical debt will not affect your credit score until one year has passed since it became delinquent. Your unpaid medical debt after 1 year may reduce your credit rating; therefore, it will become harder to secure loans or credit cards.
5. You Could Face Legal Action
Large debts sometimes open up possibilities for legal court action against debtors.
Texas Law On Unpaid Medical Bills
Medical patients are protected through specific laws, yet providers and collectors still have the right to take certain actions. Let’s break it down.
The Texas Debt Collection Act
Under Texas law, the Texas Debt Collection Act (TDCA) presides as the state regulation for debt collection conduct. Texas debt collection laws provide equivalent protections as the Fair Debt Collection Practices Act (FDCPA) implemented by federal authorities.
- Debt collectors must abstain from both threatening and harassing communication.
- Hospital collectors must limit their telephone contact to specific hours between 8 am to 9 pm.
- When you ask for debt verification by letter, they must stop their communication efforts until they send their response.
Texas residents who face hospital bill harassment can find support under the law that protects their rights.
The Texas Law of Limitations
Under statute of limitations, debt holders need to act swiftly before taking any legal action regarding unpaid debt. Every debt holder must abide by this law before they file a lawsuit regarding unpaid debts.
In Texas:
- All medical debts operating within Texas territory face a four-year time restriction on collection.
- Medical bills must be claimed legally during the period that starts from the original payment date up to the day when all payments were made.
- Hospitals, along with debt collectors, lose the power to enforce unpaid medical bills after a debt accumulates for four years without any payment.
- The hospital loses its ability to sue, but the debt stays active after the loan period ends. Unpaid bills that go unpaid for seven years will become visible when a credit report is reviewed.
Charity Care and Financial Assistance
Nonprofit Texas healthcare institutions, along with many other institutions, need to provide charitable medical care programs. The financial assistance program converts qualified patients to patients without medical costs or reduces their medical expenses to zero.
The application process is necessary to access such help. The process requires evidence that shows your family breakdown and earnings together with your financial problems. Through this program, your medical debt either becomes nonexistent or is minimized to a great extent.
How to Handle Unpaid Hospital Bills
Have a look at these tips, these steps can help you handle your payment difficulties:
1. Review the Bill Carefully
Always check your bill thoroughly. Check the technical mistakes and see whether all payments match your services or not. Request a detailed invoice from the hospital staff whenever they do not initially provide it.
2. Talk to the Hospital Staff
You should reach out to hospitals before debts go to collections. Ask for payment arrangements or monthly installment structures since most facilities are available.
3. Apply for Financial Assistance
The majority of hospitals provide financial help as one of their services. You should ask even though you estimate your eligibility might be low.
4. Know Your Rights
Become knowledgeable about debt collection rules that exist under both the FDCPA and the Texas Debt Collection Act. You should submit a complaint regarding unfair treatment to both the Texas Attorney General’s office and the Consumer Financial Protection Bureau (CFPB).
5. Get Legal Help if Sued
Don’t ignore a court order. Visit a legal aid service or hire a consumer attorney to receive legal defense for your situation.
Final Thoughts
Nonpayment of medical expenses results in various consequences for patients. By now you have understood what happens when you don’t pay medical bills. In short, when you keep avoiding medical bills, it escalates into significant financial problems. These include degraded credit report status combined with collection actions and judicial proceedings. Texas residents have critical safety measures and available options that protect them.
Need help in managing your medical bills?
Contact DWP Medical; we have solutions for all your medical billing issues. Outsource your billing operations to us, and our expert and highly qualified team knows how to handle complex billing.
Texas residents who need assistance with medical bills should take action quickly. Take immediate action with full awareness of the available way-out. Know that your monetary situation has equal importance to your physical condition.