Assuming nobody else is at fault

  • gabe [he/him]@literature.cafe
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    1 year ago

    It’ll also wreck your credit, and if you’re unlucky they’ll sell your debt off to debt collectors to harass you and your family. Even if they’ve died. And then the truly desperate will sometimes commit heath insurance fraud making the system even more immensely fucked for everyone except for the hospitals and insurance companies

    • Foggyfroggy@lemmy.world
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      1 year ago

      Not exactly. Medical debt is different compared to retail debt like credit cards. It still sucks but the rules are different to protect people at least a little bit.

      • deweydecibel@lemmy.world
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        1 year ago

        Yep. Medical debt is often not calculated into your credit score by the credit agencies, either, though not in all cases. Or if it is calculated in, it is heavily weighted against so it doesn’t cause much damage.

        And it makes sense. Credit score is supposed to be a judge of your credit worthniess based on your history seeking credit and repaying debts. While medical debt is legitimate debt, it isn’t credit seeking behavior in the way an auto loan is. You didn’t choose to take it on, it would be inaccurate to take a trip to the ER into account when determining your credit seeking habits.

        • nocturne213@lemm.ee
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          1 year ago

          I sustained a workplace injury (working on a movie set) and the production company never filed the paperwork, so their insurance would not cover me. I refused to pay the bill and it showed up on my credit report and caused issues for three years. Eventually i found my wrap gift from movie and inside the set medic had put a copy of the paperwork. I scanned it and emailed it to the hospital and within 72 hours it was taken care of and like a month later it was off my credit report. (Time frames may be off as this transpired in 2015)

        • droans@lemmy.world
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          1 year ago

          About five or six years ago, most creditors started using a different FICO model which doesn’t include medical debt. Basically, the idea is that being unable to pay medical debt says very little about how well you can handle debt.

          There are also models that don’t consider student loans, but those aren’t used as often.

        • deweydecibel@lemmy.world
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          1 year ago

          It’s somewhat in the credit agencies best interests to ignore or heavily discount medical debt. Because so many people have it, and not by choice, to destroy everybody’s credit rating because of medical debt would decimate a significant portion of the country’s ability to get credit. That would have a domino effect on a great many things, and cause enough of an issue that it’s likely there would be further regulations on the credit agencies.

          Remember, businesses want customers, they just want customers they can trust to pay the debt. Credit agencies using medical debt to decimate an otherwise decent credit rating denies those businesses a perfectly trustworthy customer.

          They absolutely should be regulated more, though, regardless of how they handle medical debt now. Frankly I think a great step would be if we extended HIPAA laws so that the credit agencies literally cannot receive any information about medical debt whatsoever.

      • gabe [he/him]@literature.cafe
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        1 year ago

        Mind you, that is a recent change and there are some places that still illegally do so and it is a pain in the ass to get it removed.

    • Potatos_are_not_friends@lemmy.world
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      1 year ago

      The big story in my city a while back was a shitty debt collector that stole money from a guy’s bank account.

      ‘It is like robbery’: A debt collector wrongly wiped out an Oregon man’s entire bank account

      According to court records, the debt collector said Salazar owed money for treatment at Providence Portland Medical Center in late 2007 and 2008. Providence claimed it sent 26 billing statements and six financial assistance applications to the home address provided by the patient. The unpaid bills for six emergency room visits originally totaled $4,750 but have since ballooned to more than $14,000 after costs, fees and interests associated with the debt collection.

      Salazar tried explaining to Professional Credit Service that he didn’t have the money to pay, but a customer service representative seemed unsympathetic.

      “They did not care if my brother is sick and this is going to put us on the street,” explained Salazar. “They did not care.”

      In April, Salazar filled out court papers challenging the garnishment. It temporarily froze his bank account, preventing the debt collector from taking any more money. At the same time, it kept Salazar from accessing much needed funds, including his paycheck, which is electronically deposited into the account.

      https://www.kgw.com/article/news/investigations/debt-collector-wrongly-wiped-out-bank-account/283-01681963-8fe0-4b44-a57f-c076e4521b22

    • TheHarpyEagle@lemmy.world
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      1 year ago

      I feel like a lot of people ignore collection agencies when they advise others to “just not pay.” Yeah you could probably get away without paying, but you and your entire family will be harassed nonstop. There’s been few things more chilling to me than a stranger calling me out of the blue with my sister’s name and info telling me to get her to settle up (thankfully just a small amount).