Myths about medical debt collection demystified

A famous quote goes as ‘Health is Wealth’. In the current competitive environment, jobs have become more demanding. To perform better people are keeping their health at stake and working late hours. Due to this reason, many uncommon lifestyle diseases have become prevalent in society. Moreover, medical care is getting expensive day-by-day. The current insurance plans only cover a part of these expenses. Thus, the load of paying hefty medical bills is on the patient in case of an unfortunate event.

Paying or recovering medical bills can be overwhelming. There are certain myths associated with medical debt collection that give people the wrong idea about medical debt collection. In this article, we have tried to clear those myths so you get a better understanding of the medical bill collection process.

Myth 1: Payment on medical bills ensures it doesn’t go to collections

People assume that if you continue paying a certain amount of medical debt, then it won’t be sent to collections. The reality is that if you are doing only partial payments, your debt keeps on building. If full payment are missing, then there are high chances that your debt will be sent to collections. The creditors generally wait for 3 to 6 months before sending the delinquent account to collections.

Myth 2: A notice has to be sent before sending a delinquent account to collections

In most cases, a notice is sent to the debtor when the debt is being transferred to collections. But, if you are unaware of the delinquency, then you might not be notified upfront. Sometimes the notices could also be sent to a wrong address or a billing error could happen. Thus, it is better to avoid getting in such circumstances.

Myth 3: Paying medical collections will improve credit score

Once your medical bill is sent to collections, your credit score takes a big hit. Paying the collections in its entirety won’t improve your credit score. In such cases, you should work with the collection agency towards paying the dues and improving the credit score. Agencies like Cedar Finance are well-versed with medical debt payment processes. They are here to help you.

Myth 4: A good health insurance plan prevents debt problems

It is good to have a health insurance plan that covers critical diseases as well. but this doesn’t guarantee that you won’t get into medical debt. If your insurance doesn’t offer full coverage of the illness, then you will have to pay the remaining amount. Some out-of-pocket costs can be high enough to get you into debt.

Myth 5: Hiring a medical collection agency will damage the reputation

Being a doctor or a medical service provider you need to hire a good medical debt collection agency. These agencies work with the patient to pay their debt. This enhances the patient experience and maintains the relationship between both the creditor and the debtor. Cedar Financial offers holistic medical debt collection services. You can visit their healthcare debt collection services by clicking here.

The key is to hire a good debt collection agency for medical debt collection. This is in the best interest of both the creditor and the debtor.

Jackson Gilbert is a Blogger. With his skills, he has been helping fellow marketers and brands worldwide. When not glued to his laptop, he can be found making travel plans that rarely happen.