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 Hawaii, as in many states, it's crucial to be financially prepared for unexpected medical expenses. Health insurance is a key component of this preparation, and residents are encouraged to maintain coverage to mitigate the costs of unforeseen medical issues. Personal savings and healthcare savings accounts, such as Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs), are also advisable financial tools to manage medical expenses. When faced with significant medical bills, Hawaii residents should act quickly to address the debt. Negotiating an interest-free payment plan with the healthcare provider, requesting a prompt payment discount, or applying for financial assistance programs offered by the hospital can help manage the debt. Taking these steps can prevent medical debt from being transferred to a collection agency, which could lead to negative reporting on credit reports and potentially harm credit scores. It's important to note that while federal laws like the Fair Credit Reporting Act regulate how medical debt is reported to credit bureaus, state laws may also offer consumer protections against aggressive debt collection practices.