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 Utah, as in many states, it's crucial to be financially prepared for unexpected medical expenses. Health insurance, personal savings, and a health care savings account are key components of this preparation. Utah does not have specific state statutes that differ significantly from federal laws regarding medical debt and credit reporting. However, 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 for patients to address the bills. If faced with a large medical bill in Utah, it's advisable to act quickly by negotiating payment plans, seeking discounts for prompt payment, and applying for hospital financial assistance programs to avoid the debt being transferred to a collection agency and potentially harming your credit score. Additionally, the No Surprises Act, effective as of January 1, 2022, provides federal protections against surprise medical billing for certain out-of-network care, which can help prevent unexpected medical bills.