What Happens When You Don't Pay Medical Bills?
Written by: Jacob S.
Published on:
Medical bills can show up when you least expect them—and when you're least prepared. Whether it’s a surprise ER visit or a specialist copay that wasn’t covered by insurance, unpaid medical bills can quickly spiral into bigger problems.
But what happens if you don’t pay medical bills? Can you be sued? Do they hurt your credit score? And what are your options if you simply can’t afford to pay?
Key Takeaways
- Unpaid medical bills can go to collections after 60–180 days, leading to persistent contact from debt collectors.
- Medical debt under $500 no longer impacts credit reports, and larger bills have a 12-month grace period before appearing.
- You can’t be jailed for unpaid medical debt, but you may face lawsuits or wage garnishment if it's ignored too long.
- Negotiating payment plans or applying for hospital assistance can significantly reduce or eliminate what you owe.
What Happens If Medical Bills are Left Unpaid?
1. Your Medical Debt May Go to Collections
If you don’t pay a medical bill within a few months, most providers will eventually send it to collections. This is usually after 60 to 180 days.
Once in collections, a debt collector will begin contacting you to arrange payment. While it’s stressful, you still have options at this point, including negotiating a lower amount or setting up a payment plan.
Important: The Fair Debt Collection Practices Act (FDCPA) protects you from harassment. Collectors must follow legal rules when contacting you.
2. You Might Get Sued (But It’s Rare)
In some cases—especially for larger balances—medical providers or collection agencies might file a lawsuit to recover the debt. If they win the case, the court could issue a judgment, which may lead to wage garnishment or liens.
However, lawsuits for medical debt are less common than for credit card or personal loan debt. Most providers would rather work out a payment plan than go to court.
Do Medical Bills Affect Your Credit?
Yes, but not as harshly as they used to. Thanks to updated credit reporting policies, medical debt affects your credit less than other types of unpaid debt.
Here’s what changed:
- Medical collections under $500 no longer appear on your credit report.
- Medical debt won’t show up for 12 months, giving you time to resolve the issue.
- Paid medical collections are removed from your credit report entirely.
That said, large unpaid medical debts that stay in collections can still damage your credit score and make it harder to qualify for loans, credit cards, or mortgages.
What to Do If You Can’t Pay Medical Bills
If you’re staring at a bill you can’t afford, here’s a smart plan to stay ahead:
1. Review the Bill for Errors
Always ask for an itemized medical bill and compare it to your insurance’s Explanation of Benefits (EOB). Billing mistakes—like duplicate charges or incorrect codes—are more common than you’d think.
Dispute anything that doesn’t look right before you pay.
2. Negotiate or Set Up a Payment Plan
Call the provider and ask:
“Can I set up a payment plan that works with my budget?”
Most hospitals and clinics offer zero-interest payment plans, especially if you contact them early. Even a $20/month plan can keep your bill from going to collections.
3. Ask About Financial Assistance Programs
Many hospitals—especially nonprofits—offer charity care or income-based discounts. Even if you earn a steady income, you might qualify for a reduced balance or bill forgiveness.
Ask the billing office:
“Do you offer any hardship or financial assistance programs?”
4. Avoid Using Credit Cards for Medical Bills
Putting a medical bill on a credit card can turn no-interest debt into high-interest financial stress. Credit card APRs often exceed 20%, which adds up fast if you’re carrying a balance.
Instead, consider:
- Personal installment loans (fixed terms, predictable payments)
- Medical financing plans (some offer 0% intro APR)
- Emergency cash loans from Simple Fast Loans—even with bad credit
5. Keep Records of Everything
Track all:
- Payment receipts
- Emails or letters from the provider or collection agency
- Conversations and agreements (write down dates and names)
Having a clear paper trail protects you in case the bill resurfaces later or there’s a dispute.
| Step | Action | Details | Key Questions/Reminders |
|---|---|---|---|
| 1. Review the Bill for Errors | Request an itemized bill and compare it to your Explanation of Benefits (EOB) | Look for duplicate charges, incorrect codes, or procedures you didn’t receive | Dispute any discrepancies before paying |
| 2. Negotiate or Set Up a Payment Plan | Call the provider to ask about affordable payment options | Many offer zero-interest plans if contacted early; even $20/month helps prevent collections | Ask: “Can I set up a payment plan that works with my budget?” |
| 3. Ask About Financial Assistance Programs | Inquire about hardship or income-based aid | Nonprofit hospitals often provide discounts or full forgiveness based on income | Ask: “Do you offer any hardship or financial assistance programs?” |
| 4. Avoid Using Credit Cards | Don’t transfer medical debt to high-interest credit cards | Credit card APRs often exceed 20%, making debt harder to manage | Alternatives: • Personal installment loans • Medical financing with 0% intro APR • Emergency cash loans from Simple Fast Loans |
| 5. Keep Records of Everything | Document all payments and communications | Track receipts, letters, emails, and conversations (include names and dates) | This protects you if the bill resurfaces or a dispute arises |
Can You Go to Jail for Unpaid Medical Bills?
No. Medical debt is considered “civil debt,” not criminal. You can’t be arrested or jailed for unpaid hospital bills in the United States.
However, a lawsuit could lead to wage garnishment or liens if you don’t show up in court, so never ignore legal documents.
Don’t Ignore Medical Bills, Take Action Instead
Unpaid medical bills can cause stress, but they don’t have to ruin your finances. If you take proactive steps—like checking for errors, setting up a payment plan, or asking for help—you can avoid the worst-case scenarios.
And if you need fast cash to cover a medical emergency or avoid collections, Simple Fast Loans is here to help. We offer short-term loan options with fast approval, even if your credit isn’t perfect.
