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 Montana, as in other states, unexpected medical bills can pose a significant financial challenge. To mitigate this risk, residents are encouraged to maintain health insurance coverage, save funds for emergencies, and consider setting up a health care savings account, such as a Health Savings Account (HSA) or a Flexible Spending Account (FSA), if eligible. When faced with a large hospital bill, it's crucial to act quickly. Montana consumers should negotiate with healthcare providers to establish an interest-free payment plan, inquire about prompt payment discounts, and explore eligibility for hospital financial assistance programs. These steps can help prevent medical debt from being transferred to a collection agency, which could lead to negative reporting on credit reports and a decrease in credit scores. It's important to note that under the federal Fair Credit Reporting Act (FCRA), medical debts cannot be reported to credit bureaus until they have been delinquent for at least 180 days, providing a window to address the debt. Additionally, the Montana Consumer Protection Act provides certain protections against unfair and deceptive practices, which can include aspects of medical billing and debt collection.