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 Delaware, as in many states, unexpected medical bills can pose a significant financial challenge. To mitigate this risk, residents are encouraged to maintain health insurance coverage, personal savings, and to consider setting up a health care savings account such as a Health Savings Account (HSA) or Flexible Spending Account (FSA). When faced with a large hospital bill, Delaware residents should act quickly to address the bill by contacting the hospital's billing department to discuss payment options. Many hospitals offer interest-free payment plans, prompt payment discounts, or financial assistance programs for those who qualify. Taking these steps can help prevent medical debt from being transferred to a collection agency, which could lead to negative reporting on one's credit report and a subsequent drop in credit score. It's important to note that federal laws, such as the Affordable Care Act, also provide protections and options for health coverage that can help manage healthcare costs. Additionally, the Fair Credit Reporting Act (FCRA) governs how medical debt is reported to credit bureaus, providing a framework for disputing inaccuracies and ensuring fair reporting practices.