How One ER Visit Can Wreck Your Credit—And What You Can Do About It

The reason why you visit the ER dictates the size of your bill. The average invoice for certain conditions is highlighted below, according to BetterCare:

• Acute bronchitis: $800 to $2,500
• Fracture: $1,000 to $3,200
• Chest pain: $1,000 to $3,500
• Sprains and strains: $1,000 to $2,000
• Broken bone requiring surgery: $10,000 to $20,000+

Other Unexpected Expenses Can Run Much Higher

A diagnosis of a chronic or critical disease can be devastating not only to your health and emotions, but your finances. A hospital visit for a heart attack averages about $21,400, and that doesn’t include ongoing care for a cardiovascular condition. The first year of cancer treatment averages $43,516, and it’s more than double that in the final year.

Insurance can dramatically lower those costs, but many people still end up in debt because of bills related to serious conditions.

How Medical Debt Is Treated in Your Credit Report

As many as 41% of Americans polled by Peterson KFF said they had some form of healthcare debt. Uninsured people and those with low and middle incomes are more likely to carry medical debt.

Changes were made to help consumers deal with the heavy burden of medical debt. In 2022, the three credit bureaus (Equifax, Experian, and TransUnion) announced they would voluntarily omit medical bills from consumer credit reports, including collection items, under $500. But they’re not required to do so by law, and bigger debts are still included.

The Biden administration sought to put more protection into law, but the Trump administration has reversed those efforts. In January of this year, the Biden administration finalized protections introduced by the Consumer Financial Protection Bureau (CFPB) that gave consumers a one-year grace period before medical debt was added to their credit reports and removed from credit reports any debt that had already been paid or was less than $500. The CFPB reported that $49 billion had been removed from the credit reports of 15 million consumers across the country.

But the new rules were challenged by debt collectors and credit reporting agencies and in July, a federal judge reversed the protections after the Trump administration refused to defend them in court.

How to Keep Medical Debt From Going to Collections

Nothing can stop your healthcare provider from sending your medical bills to a debt collector. If you ignore and don’t pay the bills, you may be bombarded with collection notices and calls. Having a debt in collections does significant damage to your credit score. Payment history makes up 35% of your credit score. Taking a proactive approach can keep you out of collections and alleviate any related stress.

Review your medical bills and compare them with your insurance company’s explanation of benefits. Use this as a guide to check for any errors on your medical statements. If you find any inconsistencies, errors, or unauthorized charges, report them immediately to your insurance company to try to get them cleared.

Contact the medical service provider to discuss the bill. The office may work with you to clear up any inaccuracies. If the charges are valid, find out your options if you can’t pay the bill in full. See if you qualify for a discount or charity care. If these options aren’t available, work out a payment arrangement to pay off the balance over time.

How You Can Get Medical Debt Off Your Credit Report

Here are some ways that you can ensure that your credit report is free from medical debt:

• Check your credit report regularly: You can check your report for free each week by going to www.annualcreditreport.com. Review your report for medical debt, notes, dates, and other data to ensure that nothing is out of order. (You’re entitled to one free hard copy of your credit report from each credit reporting agency every year.)
• Review your insurance claims: Contact your insurance company to ensure your claims were processed properly and there were no billing errors. If you find any problems, ask your insurer to reprocess your claims. If all else fails, file an appeal with the insurance company.
• File a dispute: If you believe that the medical debt was reported in error or has been paid and shouldn’t appear on your report, you can file a dispute with the credit bureau in writing or online. The credit bureau has 30 days to investigate your dispute and must inform you of the decision within five business days of its decision.
• Contact the creditor or collector: Negotiate with the creditor or collection agency if you owe the debt. Ask if the debt can be removed from your credit report if you settle the debt. Some will agree to do so at a lower amount. Make sure you get the deal in writing before you submit your payment.
• See if you qualify for financial assistance: Healthcare providers or nonprofits may provide help if you can’t pay your medical bills or debt.

The Bottom Line

Medical debt affects millions of Americans each year, especially uninsured individuals. If you visit the ER, your costs could add up. If you are affected, there are steps you can take to fix your credit history. Consider contacting the insurance company, filing a dispute, working with the creditor, or seeking financial assistance to get it removed from your report.