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 York, residents are encouraged to be financially prepared for unexpected medical expenses through health insurance, personal savings, and health care savings accounts. When faced with significant medical bills, New Yorkers should act quickly to address the bill, negotiate payment plans, seek discounts, and apply for hospital financial assistance to avoid the debt being transferred to a collection agency and potentially harming their credit score. New York law provides some protections against aggressive debt collection practices and negative credit reporting. For instance, under the New York State Surprise Bill Law, patients are generally protected from receiving surprise bills for emergency services or when they are treated by out-of-network providers at an in-network facility, under certain conditions. Additionally, New York's Consumer Credit Fairness Act (CCFA), which is expected to take effect in April 2022, introduces new requirements for debt collectors and creditors, including a reduced statute of limitations for consumer debt and enhanced notice requirements before a debt can be reported to credit bureaus. It's important for individuals to understand their rights and the resources available to them to manage medical debt effectively.