What Happens If I Don’t Pay an Ambulance Bill?

An unexpected ambulance bill can arrive with substantial costs, often leaving individuals confused about how to manage this financial burden. These bills can stem from emergency transport, medical care provided en route, or non-emergency transfers between facilities. Understanding the typical processes and potential consequences of unpaid ambulance bills can help individuals navigate this challenging situation.

Initial Steps Taken by Providers

When an ambulance bill remains unpaid, the service provider typically initiates a structured collection process. This begins with an initial bill, followed by follow-up notices over several weeks or months. Late fees may accrue, increasing the total amount owed.

Providers usually engage in internal collection efforts, which may include phone calls and letters from their billing departments. These communications aim to prompt payment or establish a payment arrangement.

If these efforts are unsuccessful, the provider may eventually transfer the unpaid bill to an external third-party collection agency.

Once a debt is placed with a collection agency, communication will come directly from that agency. The agency will pursue payment through calls and written correspondence. This marks a formal escalation, as the original provider has relinquished direct collection responsibilities.

Understanding Your Credit Score

An unpaid ambulance bill can significantly affect an individual’s credit report and score once it enters the collection phase. Medical debt that goes to collections can be reported to major credit bureaus, including Experian, TransUnion, and Equifax.

Credit reporting agencies apply a one-year (365-day) waiting period from when medical debt is placed with a collection agency before it can be reported to credit bureaus (as of July 2022). Paid medical collections are no longer included on credit reports.

Additionally, medical collections under $500 are not included on credit reports as of March 31, 2023.

For larger unpaid medical collection balances, their presence on a credit report can decrease credit scores. While unpaid medical debt has a smaller impact on FICO scores than other unpaid debt, it still lowers an individual’s financial standing and can make obtaining new loans or credit lines more challenging.

Potential Legal Actions

If an ambulance bill remains unpaid and collection efforts are exhausted, the provider or collection agency may pursue legal actions. This can involve filing a lawsuit against the individual to recover the outstanding debt.

Receiving a summons and complaint is the formal notification that legal proceedings have begun, and it is important to respond within the specified timeframe, usually around 20 to 30 days.

Failing to respond to a lawsuit can result in a default judgment being entered against the individual, meaning the court rules in favor of the plaintiff because the defendant did not appear or respond.

With a court judgment, the creditor gains the ability to pursue various enforcement actions to collect the debt.

These actions can include wage garnishment, where a portion of an individual’s earnings is withheld by their employer and sent directly to the creditor. Federal law limits how much of an individual’s disposable earnings can be garnished.

Creditors may also pursue bank account levies, seizing funds directly from bank accounts, or place property liens on assets like real estate. Some states have enacted laws prohibiting wage garnishment or liens on primary residences for medical debt.

Exploring Payment and Support Options

Individuals facing an unpaid ambulance bill have several strategies to address the debt and potentially mitigate its consequences.

One effective approach is to negotiate directly with the provider or collection agency. Many providers are willing to discuss a lower lump-sum payment or establish a manageable payment plan. These plans can break a large bill into smaller, more affordable installments, often interest-free. It is important to ensure any payment plan is truly affordable to prevent further financial strain.

Financial assistance programs, often called charity care, are available through many hospitals and healthcare systems. Eligibility for these programs is typically based on income and family size, with some covering care for those earning up to 400% of the federal poverty level or facing significant out-of-pocket expenses.

Disputing the bill is another option, particularly if there are concerns about its accuracy. Requesting an itemized bill can help identify errors such as incorrect charges or duplicate billing. If an error is found, formally disputing the charge with the billing department can lead to adjustments.

Finally, reviewing health insurance coverage and appealing denied claims can be beneficial. If an insurance claim was denied, individuals have the right to appeal the decision, first internally with the insurer and then through an external review. This process involves understanding the reason for denial and providing supporting documentation.