Significant medical bills can come at any age and when least expected. It is important to be financially responsible and prepared for unexpected medical bills. This generally means having health insurance, personal savings, and a health care savings account. The credit scores of 2 in 5 Americans are negatively affected by medical bills, and one in six credit reports contains a medical debt.

If you do receive a big hospital bill, you should (1) address it promptly; (2) work out an interest-free payment plan if necessary; (3) ask for a prompt payment discount; and (4) apply for financial assistance from the hospital, if necessary. By taking these steps, you will be more likely to prevent your medical debt from being sent to a third-party debt collection agency, having it reported to credit bureaus, and damaging your credit score.

In California, it is indeed crucial to be financially prepared for unexpected medical expenses. The state has various protections in place for consumers facing significant medical bills. California law requires hospitals to provide written notice to patients about the availability of financial assistance for those who are uninsured or underinsured and meet certain income criteria. Additionally, California's Hospital Fair Pricing Act mandates that hospitals offer fair pricing to eligible patients, potentially reducing the amount owed. Patients should address medical bills promptly and can negotiate payment plans, often interest-free, directly with healthcare providers. Asking for prompt payment discounts and applying for hospital financial assistance can further alleviate the burden. Taking these steps can help prevent medical debt from being reported to credit bureaus or sent to collection agencies, which could negatively impact credit scores. It's also beneficial to have health insurance, personal savings, and a healthcare savings account, such as an HSA or FSA, to manage healthcare costs effectively.