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 Michigan, as in many states, unexpected medical bills can pose a significant financial challenge. To mitigate this risk, individuals are encouraged to maintain health insurance, personal savings, and a health care savings account. When faced with a large hospital bill, Michigan residents should act quickly to address the bill, negotiate payment plans, and explore discounts and financial assistance options offered by the hospital. Taking these steps can help prevent medical debt from being transferred to a collection agency, which could lead to the debt being reported to credit bureaus and potentially damaging an individual's credit score. It's important to note that while there is no specific Michigan statute that governs these practices, they are generally advisable financial strategies. Additionally, the federal No Surprises Act, which took effect on January 1, 2022, provides some protections against unexpected medical bills from out-of-network providers during emergency services or at in-network facilities.