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 New Jersey, residents are encouraged to be financially prepared for unexpected medical expenses through health insurance, personal savings, and healthcare savings accounts. When faced with significant medical bills, it is advisable to act quickly by addressing the bill promptly, negotiating an interest-free payment plan, asking for a prompt payment discount, and applying for financial assistance from the hospital if needed. These proactive steps can help prevent medical debt from being transferred to a debt collection agency, reported to credit bureaus, and negatively impacting one's credit score. New Jersey law also provides some protections against aggressive debt collection practices and ensures that hospitals have charity care policies in place to assist eligible patients. It's important to be aware of these rights and to communicate effectively with healthcare providers and billing departments to manage medical debts responsibly.