What to Do When a Medical Bill Is in Collections

Collections does not mean the bill is correct

An account being sent to collections means the provider stopped waiting for payment. It does not mean anyone verified that the charges were accurate. A bill with errors can end up in collections exactly like any other.

Request validation in writing

Under federal law, you generally have the right to request validation of a debt from a collection agency. Doing so in writing, promptly, requires them to verify the debt before continuing collection activity.

Keep this request separate from any dispute with the provider. They are two different processes with two different parties.

Keep disputing with the provider

Sending an account to collections does not end your ability to question the underlying charges with the provider. Continue that dispute in writing and keep both sides informed that the balance is contested.

Ask the provider whether they will recall the account from collections while the dispute is reviewed. Some will.

Know the credit reporting rules

Nationwide, paid medical collections and unpaid medical debt under $500 are generally excluded from consumer credit reports under current credit bureau policy, and unpaid medical debt of $500 or more is generally subject to a one-year waiting period before it can appear.

Several states have passed additional laws further restricting medical debt on credit reports. Some of these are being challenged in court, so confirm current rules for your state.

Do not ignore it

The worst outcome is silence. Even if you believe the bill is wrong, respond in writing, keep copies, and document every call. A paper trail is your strongest position.