Health care costs have skyrocketed for the majority of Connecticut residents and others around the nation. Despite having insurance, most consumers realize they do not have adequate coverage to pay for treatment of a catastrophic illness or recovery from a serious injury. Many individuals wind up with mountains of medicals bills, significant balances and long-term financial obligations for which they must seek debt relief. However, some recent changes to the way information is sent and recorded on credit reports could alleviate some concerns.
Typically, if someone was hospitalized for an extended period of time, he or she was responsible for the amount of medical expenses not covered by insurance. Many people are unable to pay these balances and collection agencies would get involved. At this point, a person’s credit score would suffer and thus affect their future potential to purchase a home or vehicles. A situation like this could take years to resolve, and unfortunately, the damage to one’s financial situation is already done.
Now, however, some rules have been put in place to protect those facing medical debt. Before adding unpaid medical bills to credit reports, the agencies must currently wait roughly six months. Also, if there are disputes about a claim with a provider, the doctors involved should be notified. In addition, a credit report should show when a bill has been paid by an insurance company and the debt removed.
Large amounts of debt can be overwhelming if not addressed. A Connecticut bankruptcy attorney can discuss various options for debt relief to consumers. A trusted lawyer will work diligently with clients to develop plans to help them get their finances back on track.