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 Kentucky, as in many states, it is wise to be financially prepared for unexpected medical expenses. This typically involves maintaining health insurance, having personal savings, and possibly contributing to a health care savings account such as a Health Savings Account (HSA) or Flexible Spending Account (FSA). When faced with significant medical bills, Kentucky residents should act quickly to address the debt. Negotiating an interest-free payment plan with the provider, asking for a prompt payment discount, and applying for financial assistance programs that many hospitals offer can help manage the debt. Taking these steps can prevent medical debt from being transferred to a collection agency, which could report the debt to credit bureaus and negatively impact credit scores. It's important to note that while federal laws such as the Fair Credit Reporting Act (FCRA) regulate how medical debt is reported to credit bureaus, state laws can also influence debt collection practices and consumer protections. Kentucky residents should be aware of their rights under both federal and state laws when dealing with medical debt.