How to Get Medical Bills Removed From Credit Report

Medical bills can unexpectedly appear on credit reports, impacting credit scores. Understanding how these medical debts are reported and the available avenues for addressing them is important for consumers. This article guides you through removing medical bills from credit reports.

Understanding Medical Debt on Credit Reports

Medical bills do not immediately appear on credit reports. Credit reporting policies include a waiting period, typically 180 days from the date of service, before unpaid medical debts can be reported. This allows time for insurance processing and patient payments.

If a medical bill remains unpaid after this period, it may be sold to a collection agency. Collection agencies, not original medical providers, usually report delinquent accounts. The presence of a collection account can lower a credit score.

Recent changes in credit reporting mean paid medical collection debt is no longer included on U.S. consumer credit reports. Medical collections under $500 also do not appear. The waiting period before unpaid medical debt appears on a report was extended to one year. Newer credit scoring models, like FICO 9 and VantageScore, give less weight to paid medical collections, sometimes disregarding them. Unpaid medical collections still negatively affect credit scores.

Preparing Your Case for Removal

Before initiating removal actions, gather all relevant financial and medical documentation. First, obtain free copies of your credit reports from Equifax, Experian, and TransUnion via AnnualCreditReport.com. Review each report to identify medical debt entries, noting account numbers, dates, and reporting agencies.

Next, collect supporting documentation. This includes medical billing statements, Explanation of Benefits (EOBs) from your health insurance, and payment records. These documents provide a comprehensive overview of the bill’s history.

Identify the specific reason for the bill’s inaccuracy or dispute. Common reasons include the bill being paid, incorrect insurance application, an incorrect billed amount, services not received, or identity theft. Organize all collected information to streamline the removal process.

Initiating the Removal Process

With documentation assembled, formally dispute inaccurate medical bills with credit reporting agencies. Disputes can be initiated online, by mail, or by phone. For written disputes, send correspondence via certified mail with a return receipt for proof of delivery.

Your dispute letter should clearly state the account number and reason for the dispute. Reference supporting documentation like EOBs or proof of payment, sending copies, not originals. Request the credit bureau investigate and remove the item if inaccurate or unverifiable.

Also, dispute directly with the medical provider or collection agency. Contact them to explain the discrepancy and provide supporting documentation. This direct communication can often resolve the issue faster.

Credit bureaus must investigate disputes within 30 to 45 days. They will inform you of the outcome. If the item is inaccurate, they will remove it. If denied, they will provide a reason and inform you of your right to add a statement to your credit file.

Strategies for Addressing Valid Medical Debt

For legitimate medical debt negatively impacting your credit, several strategies can mitigate its effects. One approach is negotiating directly with the medical provider or collection agency for a reduced settlement. Contact them to explain financial hardships or offer a lump-sum payment less than the full amount. Providers may accept a reduced payment to ensure some funds are received.

Another strategy is a “pay-for-delete” agreement with a collection agency. Offer to pay the debt in exchange for them removing the negative entry from your credit report. Not all agencies agree, but it can be an option. Obtain any such agreement in writing before payment, clearly stating the account will be deleted upon receipt.

Paying off a valid medical collection account, even without a pay-for-delete agreement, can improve your credit. While the entry may remain for up to seven years, its status will update to “paid” or “satisfied.” This update is viewed more favorably by credit scoring models and lenders than an unpaid collection.

Post-Removal Actions and Monitoring

After addressing medical debt, verify the outcome. Once notified of a successful dispute or payment, obtain updated credit reports. Review them to confirm the medical bill entry has been removed or updated to a paid status.

Establish ongoing credit monitoring to ensure the debt does not reappear. This helps identify new inaccuracies or re-reported debts quickly.

If a dispute is denied or debt re-reported, further action may be required. This could involve submitting additional documentation, filing a complaint with consumer protection agencies like the Consumer Financial Protection Bureau (CFPB), or seeking legal advice. Maintain detailed records of all communications and documentation for any subsequent actions.