Medical bills can wreck credit, even when paid off
Posted by defensebaseactcomp on March 4, 2012
When CNA does not pay Walter Reed and it goes on your credit rating as a “Serious Delinquency to the Treasury Department”
When AIG does not pay Landstuhl and the government attaches your Social Security, your only source of income because they are denying your claim
When CNA, AIG, ACE “approve” your doctors and medical but do not pay the bills
When CNA does not pay laboratory fees that show up on your credit rating years later
When CNA approves your wheelchair but it is repossessed due to non payment
When a US DOL ALJ signs a useless order requiring CNA or AIG to pay your past medical bills and they boldly defy the order
Your credit has been irreparably damaged and it is you that must bear the extreme cost of their abuse, never the insurance company or those that help them get away with this
By Carla K Johnson AP March 4, 2012
CHICAGO (AP) — Mike and Laura Park thought their credit record was spotless. The Texas couple wanted to take advantage of low interest rates, so they put their house on the market and talked to a lender about a mortgage on a bigger home in the Dallas-Fort Worth suburbs.
Their credit report contained a shocker: A $200 medical bill had been sent to a collection agency. Although since paid, it still lowered their credit scores by about 100 points, and it means they’ll have to pay a discount point to get the best interest rate. Cost to them: $2,500.
A growing number of Americans could encounter similar landmines when they refinance or take out a loan. The Commonwealth Fund, a private foundation that sponsors health care research, estimates that 22 million Americans were contacted by collection agencies for unpaid medical bills in 2005. That increased to 30 million Americans in 2010.
Surprisingly, even after the bills have been paid off, the record of the collection action can stay on a credit report for up to seven years, dragging down credit scores and driving up the cost of financing a home. An estimated 3.4 million Americans have paid-off medical debt lingering on their credit reports, according to the Access Project, a research group funded by health care foundations and advocates of tougher laws on medical debt collectors.
Among them are Nathen and Melissa Cobb of Riverton, Ill., who tried to refinance their home last year. They didn’t qualify for the loan because of $740 in medical bills that had been sent to a collection agency. The Cobbs were surprised because the bills — nearly a dozen small copayments ranging from $6 to $280 — had been paid before they tried to refinance. The collection action took their credit score from good to mediocre and is likely to mar their credit report for years.
“I’m not one of those people trying to ditch out on my bills,” 34-year-old Melissa Cobb said. “I’m really frustrated.”
Medical bills make up the majority of collection actions on credit reports, and most are for less than $250, according to Federal Reserve Board research.
This entry was posted on March 4, 2012 at 4:53 pm and is filed under ACE, AIG and CNA, Chartis, Civilian Contractors, Defense Base Act, Defense Base Act Attorneys, Defense Base Act Insurance, Defense Base Act Lawyers, Department of Labor, Dropping the DBA Ball, Injured Contractors, LHWCA Longshore Harbor Workers Compesnation Act, War Hazards Act. Tagged: ACE, AIG, ALJ, Charits, CNA, Collecition Agency, Credit Rating, Credit Report, Landstuhl, Order to pay Medical, Repossessions, Serious Delinquency Treasury Department, Treasury Department, Walter Reed. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.