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 Maryland, it is indeed crucial to be financially prepared for unexpected medical expenses. The state has laws that provide some protection against aggressive debt collection practices, including medical debts. Under the Maryland Medical Debt Protection Act, hospitals are required to offer a free or reduced-cost care policy to patients who meet certain income criteria. Additionally, hospitals must provide patients with a clear explanation of their bill and a 30-day notification before sending the bill to collections. Patients have the right to request an itemized bill and to apply for financial assistance. It is also important to have health insurance coverage, which is mandated by federal law with certain exemptions, to help mitigate the costs of medical care. Personal savings and healthcare savings accounts, such as Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs), can also provide a financial buffer. Addressing medical bills promptly, negotiating payment plans, and seeking discounts or financial assistance can help prevent medical debt from damaging one's credit score. Maryland residents should be aware of their rights and available resources when dealing with significant medical bills.