Nearly 3 in 10 insured adult Americans had a medical debt over $500 that was sent to a collection agency, according to a Consumer Reports. The same survey found that 24% had no idea they owed the bill, and 13% said they never received the medical bill.
If you discover that a medical bill was sent to a collection agency, don’t pay it until you are 100% certain that you legally owe the money. By knowing what to ask yourself and the collection agency, you could end up with a lower bill or even no bill at all.
What is the statute of limitations?
The statute of limitations refers to the amount of time an individual or company can file a legal action. For medical debt, the time limit varies from state-to-state.
| State | Written Contracts | Oral Contracts | Promissory Notes | Open-ended Accounts |
|---|---|---|---|---|
| Alabama | 6 | 6 | 6 | 3 |
| Alaska | 3 | 3 | 3 | 3 |
| Arizona | 6 | 3 | 6 | 3 |
| Arkansas | 5 | 3 | 5 | 5 |
| California | 4 | 2 | 4 | 4 |
| Colorado | 3 | 3 | 3 | 3 |
| Connecticut | 6 | 3 | 6 | 3 |
| Delaware | 3 | 3 | 3 | 3 |
| D.C. | 3 | 3 | 3 | 3 |
| Florida | 5 | 5 | 4 | 4 |
| Georgia | 6 | 4 | 4 | 4 |
| Hawaii | 6 | 6 | 6 | 6 |
| Idaho | 5 | 4 | 4 | 4 |
| Illinois | 10 | 5 | 5 | 5 |
| Indiana | 6 | 6 | 6 | 6 |
| Iowa | 10 | 5 | 5 | 5 |
| Kansas | 5 | 3 | 5 | 5 |
| Kentucky | 15 | 5 | 10 | 5 |
| Louisiana | 10 | 10 | 10 | 3 |
| Maine | 6 | 6 | 20 | 6 |
| Maryland | 3 | 3 | 12 | 3 |
| Massachusetts | 6 | 6 | 6 | 6 |
| Michigan | 6 | 6 | 6 | 6 |
| Minnesota | 6 | 6 | 6 | 6 |
| Mississippi | 3 | 3 | 3 | 3 |
| Missouri | 10 | 6 | 3 | 5 |
| Montana | 8 | 5 | 5 | 5 |
| Nebraska | 5 | 4 | 5 | 4 |
| Nevada | 6 | 4 | 3 | 4 |
| New Hampshire | 3 | 3 | 6 | 3 |
| New Jersey | 6 | 6 | 6 | 6 |
| New Mexico | 6 | 4 | 4 | 4 |
| New York | 6 | 6 | 6 | 6 |
| North Carolina | 3 | 3 | 3 | 3 |
| North Dakota | 6 | 6 | 6 | 6 |
| Ohio | 8 | 6 | 6 | 6 |
| Oklahoma | 5 | 3 | 6 | 5 |
| Oregon | 6 | 6 | 6 | 6 |
| Pennsylvania | 4 | 4 | 4 | 4 |
| Rhode Island | 10 | 10 | 10 | 10 |
| South Carolina | 3 | 3 | 3 | 3 |
| South Dakota | 6 | 6 | 6 | 6 |
| Tennessee | 6 | 6 | 6 | 6 |
| Texas | 4 | 4 | 4 | 4 |
| Utah | 6 | 4 | 4 | 4 |
| Vermont | 6 | 6 | 14 | 6 |
| Virginia | 5 | 3 | 6 | 3 |
| Washington | 6 | 3 | 6 | 6 |
| West Virginia | 10 | 5 | 6 | 5 |
| Wisconsin | 6 | 6 | 10 | 6 |
| Wyoming | 10 | 8 | 10 | 6 |
- Does the statute of limitations excuse you from responsibility?
- Should you ask to see an itemized bill?
- Are the dates and providers correct?
- How long do I have to dispute the debt?
- What’s the best way to overcome medical debt?
Before you pay an outstanding medical bill, it is important to determine exactly when the service or procedure was performed. If it is longer than the state’s statute of limitations where you were treated, you may be able to get a debt collection lawsuit thrown out of court. Please note that even if the law excuses you from paying the debt, it could still impact your credit score for 7 years.
Yes! Don’t just assume the bill is correct. Ask for an itemized bill and comb over every single charge, especially if it is for a hospital stay. You might find a procedure you didn’t have or a medicine that was never prescribed. For example, you could have several charges for physical therapy when your hospital stay was for a kidney stone. If something doesn’t sit right with you, call your provider or insurance company.
After you have carefully looked over the charges, check to see if the dates and providers are correctly listed. This can be especially important for hospital stays when several specialists could visit you on any given day.
It is important to act immediately on a medical debt you believe is incorrect or invalid. You only have 30 days to dispute it, according to the CFPB, and the countdown legally begins the day you receive notification from a debt collector. Once you dispute the debt, the collector can’t call or contact you until they have verified the debt for you in writing. But remember, if you don’t dispute the debt within 30 days, the collector has every right to assume it is valid.
Medical debt consolidation (also called negotiation) is a good resource to deal with medical debt, especially if you have multiple creditors and accounts to handle. A debt relief company can help you negotiate your balances and combine it into one loan. This makes paying off your balances more manageable with a single monthly payment at a lower monthly amount. You can also save money with a lower interest rate and by avoiding additional charges for late fees and other costs. With the right financial plan, you can eliminate the stress of paying for health costs and focus on what matters most: getting healthy and remaining that way.
Tip:
Your medical bill dispute should be made in writing to keep records in case you land in court and to ensure that the debt collector verifies the debt.
