Can I Dispute a Medical Bill on My Credit Report?

Medical bills can be costly and can blemish your credit if you fail to pay them in a timely fashion. If you have health insurance, a settlement may take a long time to pay out and you are still responsible for payment of the bill while you wait. If the account becomes delinquent, it can be reported to a collection agency thereby lowering your credit score. If you have a medical bill erroneously reported on your credit report, it's important to take steps to correct or dispute the information.

A Widespread Problem

Approximately 14 million Americans are struggling with past due medical bills erroneously reported to collection agencies, according to a December 2010 article published in "The New York Times." These bills are frequently incurred when patients are facing emergencies or tough diagnoses, and when they are least able to keep track of their due dates. When settlements are paid late, health care providers hire collection agencies who report the unpaid bills to the credit bureaus.

Reporting The Bill

Consistently check your credit report. You are entitled to a free credit report each year from the major credit reporting bureaus -- Experian, TransUnion and Equifax. When you find the bill you want to dispute on your credit report, write a letter to the three credit bureaus and explain in detail the error with the unpaid bill. Provide documentation, such as insurance reports or statements. The credit agencies will open an investigation and, by law, they must review consumer complaints.

Consequences

Unpaid medical bills can have negative consequences on your credit report. Your credit score can drop, which affects your ability to borrow money and establish lines of credit. In some cases, a low credit score can hinder your employment opportunities as well. Typically, collection agencies will notify the credit bureaus every month that you do not satisfy your past due account; this will continually drop your score.

Be Proactive

Many doctors, dentists and other medical facilities are accommodating if you communicate your financial situation. Medical professionals may take partial payment for outstanding bills or reduce the interest rate or late fees. Some may even reduce the total debt, according to author Robin Leonard.