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 Minnesota, it is wise to be financially prepared for unexpected medical expenses through health insurance, personal savings, and a health care savings account. Minnesota law requires hospitals to provide free or discounted care to eligible patients who cannot afford their medical bills, under the Minnesota Attorney General's agreement with hospitals. If faced with a large medical bill, it's crucial to act quickly by addressing the bill, negotiating a payment plan, asking for discounts, and applying for financial assistance to avoid the bill going to collections and affecting your credit score. Minnesota's nonprofit hospitals are required to offer financial assistance to patients who meet certain income criteria. Additionally, the state's Consumer Protection Division provides guidance on dealing with medical bills and debt collectors. It's important to understand your rights and options to manage medical debt effectively and protect your financial health.