What Happens When People Don't Pay Doctor's Bills?

Not paying your medical bills can have serious consequences across the board, affecting your finances, relationships with your insurance company and health care provider. Medical bills are a form of unsecured debt, meaning no collateral exists to force you to pay. For this reason, many insurance companies pursue aggressive civil action to obtain a court order forcing your payment.

Premiums Go Up

• When patients avoid paying bills for medical procedures, it isn't the doctor who takes the financial hit -- it's the health insurance company. The doctor is paid through the insurance company who then looks to the patient to pay any remaining balance under the terms of the patient's insurance policy. As more and more patients refuse to pay these balances, the insurance company has no choice but to pass these expenses along to everyone else in the form of higher monthly premiums. When one person refuses to pay, everyone else has to pick up the slack.

Credit Scores Go Down

• Health insurance companies generally don't bother with lengthy claims procedures and instead choose to sell your medical debts off to a collection agency. A bad debt can severely damage your credit score making it difficult to secure other forms of credit such as a home loan, credit card and car loan. When this information is reported to a credit bureau it remains on your credit score for at least seven years. Collection agencies may contact your home in an attempt to recoup your medical debts and may even sue you if they feel you really have the ability to repay them but are choosing to withhold payment.

No Health Insurance for You

• When you don't pay your medical bills, your insurance company may drop you from coverage as a bad risk. This can make it more difficult for you to secure health insurance coverage in the future. Without health insurance, you are required to pay for each visit with a health care provider at the time of the appointment. Not having health insurance can be a serious problem when faced with a sudden illness or grave injury. Medical providers are required by law to administer stabilizing care but for-profit hospitals have the power to refuse you in non-life threatening situations because of your inability to pay.