What You Should Know About The ‘No Surprises Act’ And Your Credit Report

If you’ve ever experienced the shock of receiving an unexpectedly large medical bill after a visit to the emergency room or for other health care services, you’re not alone. The No Surprises Act, enacted on January 1, 2022, attempts to alleviate the burden of surprise medical bills and provide more explicit financial protections for those with health plans.

It’s very important to understand what information is and what information is not included in consumer credit reports so you can accurately handle your finances. This legislation ensures that medical collections under $500 get removed from your credit report so they don’t impact your score. You can self-report to a credit bureau if you believe there has been a mistake in your report. Let’s delve into the key aspects of the No Surprises Act and its implications for your credit report.

Understanding the No Surprises Act

The No Surprises Act is designed to protect individuals with group and individual health plans from surprise medical bills, particularly those stemming from services provided by out-of-network providers. The Act covers various scenarios, like emergency services, nonemergency services from out-of-network providers at in-network facilities, and air ambulance services from out-of-network providers.

One common situation that leads to surprise medical bills is when individuals receive emergency care at a hospital that isn’t in their insurance network. These bills can be substantial and catch patients off guard. Additionally, even when individuals follow their health plan’s rules diligently, unexpected bills can still arise. For instance, a visit to an in-network hospital for a preapproved surgery could lead to a separate bill from an out-of-network provider involved in the procedure.

Coverage and Protections

The No Surprises Act offers different protections based on your health care coverage. The Act prohibits surprise bills for most emergency services if you have health insurance through an employer, a health insurance marketplace, or an individual plan directly from an insurance carrier. It also prevents providers from charging out-of-network cost-sharing rates for specific services and limits the amount they can charge you.

The Act also requires medical providers and facilities to give patients a notice outlining their billing protections and contact information in case of violations. However, the Act doesn’t cover ground ambulance services, which remain under review.

For uninsured or self-pay individuals, the Act mandates that providers furnish a good-faith estimate of medical costs upon request or after scheduling a medical service. This estimate includes the primary treatment cost as well as other associated services.

Addressing Medical Debt and Your Credit Report

Unpaid medical bills have been a significant concern for many households in the United States. The Act recognizes that medical bills may take time to process through insurance, and as a result, consumer credit bureaus delay adding unpaid medical bills to credit reports for 180 days. This grace period gives individuals more time to address and resolve medical bills before they negatively impact their credit.

However, this doesn’t mean you should ignore medical bills. It’s crucial to review bills promptly, correct errors, and file disputes if necessary. Regularly monitoring your credit report lets you stay informed about potential issues related to unpaid medical bills and helps safeguard your credit score.

Taking Control of Your Medical Bills and Credit

The No Surprises Act introduces crucial protections for individuals facing unexpected medical bills, ensuring greater transparency and fairness in billing practices. To navigate the landscape effectively and protect your credit, consider the following steps:

• Check Your Credit Report: Take advantage of the free online credit reports offered by Equifax, Experian, and TransUnion through AnnualCreditReport.com. Look for any outstanding medical bills, collections under $500, or errors on your report.
• Dispute Inaccuracies: If you identify incorrect information, dispute it with the credit reporting company. The extension of the dispute time frame gives you more flexibility to address outstanding bills before they affect your credit.
• Know Your Rights: Familiarize yourself with the provisions of the No Surprises Act and your rights under the law. This knowledge empowers you to advocate for yourself and challenge unfair billing practices.
• Negotiate and Communicate: If you’re struggling to pay medical bills, don’t hesitate to negotiate with health care providers. They may be willing to offer payment plans or discounts, especially if you demonstrate financial hardship.
• Explore Financial Assistance: If you cannot pay your medical bills, research and inquire about financial assistance programs, often called “charity care.” These programs can provide relief and support during challenging times.
• Monitor Regularly: Stay proactive by regularly monitoring your credit report and addressing any issues promptly. Taking swift action can help you maintain a healthy credit score and financial well-being.

Bottom line

The No Surprises Act represents a significant step toward addressing surprise medical bills and their impact on individuals’ credit reports. By understanding your rights, staying informed, and taking proactive steps, you can confidently navigate the healthcare landscape and protect your financial health. Keep in mind that this is just an overview of the No Surprises Act, so you should read the act in depth to know your rights and when you might be eligible to file disputes or submit a complaint.