How an Unpaid Health Insurance Bill Impacts Your Credit Score

If you have health insurance through the Affordable Care Act (ACA), you may be wondering what happens if you miss a payment. Will it impact your credit score? The answer is not always clear-cut.

In general, unpaid health insurance premiums are not considered medical debt and are not reported to credit bureaus. However, an unpaid bill may be sent to collections, and a collection account can negatively impact your credit score.

What is the difference between medical debt and health insurance premiums?

Medical debt is money you owe to a healthcare provider for services you have received. Health insurance premiums are the monthly payments you make to your insurance company to maintain your coverage.

Why aren’t unpaid health insurance premiums considered medical debt?

There are a few reasons why unpaid health insurance premiums are not considered medical debt. First, health insurance is a contract between you and your insurance company. When you miss a payment, you are not breaking a contract with a healthcare provider. Second, health insurance premiums are not for services you have already received. They are for coverage you will receive in the future.

Can an unpaid health insurance bill go to collections?

Yes, an unpaid health insurance bill can go to collections. If you miss a payment, your insurance company may send your account to a collection agency. A collection account can negatively impact your credit score.

What can you do if you miss a health insurance payment?

If you miss a health insurance payment, the best thing to do is to contact your insurance company right away. They may be able to work with you to set up a payment plan or waive the late fee. If your account is sent to collections, you should contact the collection agency and try to negotiate a payment plan.

How can you avoid missing a health insurance payment?

There are a few things you can do to avoid missing a health insurance payment:

Set up automatic payments. This way, you won’t have to worry about forgetting to make a payment.
Keep your contact information up to date. If your insurance company has the wrong address or phone number, they may not be able to contact you about a missed payment.
Contact your insurance company if you are having trouble making your payments. They may be able to help you find a payment plan that works for you.