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 Massachusetts, residents are encouraged to be financially prepared for unexpected medical bills by maintaining health insurance, personal savings, and a health care savings account. The state requires most residents to have health insurance coverage, aligning with the Massachusetts Health Care Reform Law, which served as a model for the federal Affordable Care Act (ACA). When faced with significant medical bills, it is advisable to act quickly by addressing the bill, negotiating payment plans, asking for discounts, and seeking financial assistance from the hospital. Taking these steps can help prevent medical debt from escalating to third-party debt collection, which could negatively impact credit scores. Massachusetts law also provides some protections against aggressive debt collection practices and requires hospitals to offer financial assistance to eligible patients. It's important to understand your rights and the resources available to manage medical debt effectively.