What Happens if You Don’t Pay Medical Bills? Exploring Medical Debt Options

Undergoing the labyrinthine process of meeting with doctors and specialists, as well as scheduling consultations before important surgeries, can lead to massive medical bills. Vanity procedures of all types, too, can rack up huge medical debt, and the line between necessary accessories and procedures isn't always clear in the eyes of insurance companies.

What would happen, though, if you simply ignored the pile of bills urging you to pay immediately? Are there any real consequences?

This is a very real problem that countless individuals and families experience daily in the U.S. If you were to choose not to pay any sort of bill, especially a medical bill, it would be best to consult with a lawyer to understand the local and federal rules dictating how your life could be affected by eschewing paying your bills.

All of that said, let's explore some of the most obvious ramifications of not paying your medical bills and how your daily life may be impacted.

If you do not pay your medical bill after failing to resolve any issues with your provider or insurance company, your bill will be sent to a debt collector, per Investopedia.

As the financial resource website CreditNinja explains, depending on the cost of the medical debt, the length of time the debt has gone unpaid, and other factors, you may experience any number of severe financial consequences.

"Your credit score can drop, your wages can be garnished, and you may have difficulty getting loans in the future. In addition, unpaid bills and collections can stay on your credit report for up to seven years," per CreditNinja.

Although some sources say that some medical debt will not show up on your credit report, it is best to consult with a lawyer in conjunction with a certified financial expert to verify your unique situation.

"One important thing to remember when dealing with a debt collection agency is that they will often allow you to settle the debt for less than what you owe to the medical provider. So instead of avoiding the collection agency, it’s wiser to work with them to settle the amount," per CreditNinja. "Since they pay less for the debt than what you owe, they may be willing to entirely get rid of the debt for much less than the total amount."

Remember: the billing operations at your provider's office are not infallible, and human mistakes happen all of the time. If you haven't yet done so, Investopedia recommends reviewing your bill closely to ensure that you weren't billed incorrectly or that your insurance didn't skip out on paying something they should have.

According to the Centers for Medicare & Medicaid Services (CMS) the U.S. Department of Health and Human Services, the Department of Labor, and the Department of the Treasury released a surprise billing act (the multiple-part “Requirements Related to Surprise Billing") to empower and protect patients.

Because of this common-sense legislation, patients are entitled to several protections by law, including a dispute resolution process when issues arise.

Ultimately, you are in charge of deciding whether or not you pay your medical bills. Of course, that also means that without proper legal guidance, you may then experience legal actions against you, which could follow you for the remainder of your life.