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 Iowa, as in many states, unexpected medical bills can pose a significant financial challenge. To mitigate this risk, it is advisable for residents to maintain health insurance coverage, personal savings, and consider a health care savings account, such as a Health Savings Account (HSA) or a Flexible Spending Account (FSA), to cover out-of-pocket expenses. When faced with a large hospital bill, Iowans should act quickly to address the bill by reviewing it for accuracy, contacting the hospital's billing department to negotiate payment terms, and exploring options such as interest-free payment plans or prompt payment discounts. Additionally, hospitals often have financial assistance programs for qualifying individuals, which can help reduce the burden of medical bills. Taking these steps can help prevent medical debt from being transferred to a collection agency, which could negatively impact credit scores. It's important to note that under the Fair Credit Reporting Act (FCRA), medical debts cannot be reported to credit bureaus until they have been delinquent for at least 180 days, providing a window of time for patients to resolve or dispute the bills. Furthermore, the No Surprises Act, effective as of January 1, 2022, provides federal protections against surprise medical billing for certain out-of-network care.