While working in the clinics, many patients asked me about the impact of their medical debt on their credit report. I often would start by asking the patients if they had accessed their credit report to assess if there is medical debt on it. Across the board, patient’s said “no,” or “I don’t know how,” or “I can’t afford it.” This resource round up will provide you with some late breaking news about credit reporting, as well as some steps you can take to help advocate for yourself and your credit score.
Last week, the three major United States credit bureaus made some changes to the way in which medical debt is included on your credit report, as well as how long it can stay on your report. The biggest change is that credit reporters will now allow 180 day waiting period BEFORE medical debt can be included in your credit report. This allows time for medical claims to be processed appropriately by the insurance (and sometimes to go through appeals) before it is labeled as an unpaid debt. The other major change enacted this week is that once it has been resolved (paid off), by either an insurance company or an individual, medical debt must be removed from your credit report by the credit reporting companies. Implementation of these changes will be phased in over the next several months.
While your healthcare provider/hospital itself may not report your medical debt to credit bureaus, once your debt is “sold” to a collection agency, it likely WILL be reported and show up on your credit report. Those credit scores impact many things, including your ability to secure loans (think house or car), lower interest rates on those loans, credits cards, and can even impact your ability secure employment!
Get a copy of your credit report annually and review it carefully. You are entitled to a FREE credit report once a year from each of the 3 credit bureaus, so get one from each spaced out over the year. Access your FREE credit report here.
As a cancer survivor, it is IMPERATIVE that you keep on top of your medical bills. Don’t just put them in a box and hope they will take care of themselves. They will not. Here are some helpful tips for staying on top of your medical claims and bills:
- Formulate a record keeping system that works FOR YOU. This may be a file box where you keep paper copies, or an Excel spreadsheet.
- Open and examine EVERY bill/statement you receive related to your healthcare.
- Match the bills from the provider with the explanation of benefits forms (EOB’s) you receive from your insurance companies. Be sure the information on these two forms about how your claim was paid are equal.
- Report discrepancies to your insurance company immediately.
- Report discrepancies to patient account/billing at your health care provider immediately.
- Keep a detailed record of everyone you talk to about your bill: name, phone number, id number, date and time you called and what was discussed.
- Know your insurance coverage: what is your deductible, your copay, your coinsurance, your out of pocket maximum?
- Ask for help! Oncology social workers, and financial navigators/counselors can help you understand your bills and advocate for coverage.
- Appoint a family member or friend to be your medical bill review partner. Two sets of eyes reviewing bills and EOB’s is better than one.
- If you don’t agree with a denial of service, appeal the decision. Your provider’s office will need to partner with you in this appeal process.
The financial impact of cancer care and treatment is often overlooked by medical teams. Your credit report can have long range and wide sweeping impacts on your life after cancer. Being on top of your out of pocket medical costs, where to get help and how your medical related debt impacts your credit score is a key component of survivorship. It’s important to speak up if you are struggling with these issues and ask for help.
Resources and further reading:
Fair Credit Report Act
http://www.consumer.ftc.gov/sites/default/files/articles/pdf/pdf-0111-fair-credit-reporting-act.pdf
Association of Community Cancer Centers
US News and World Report
Consumer Financial Protection Bureau