Billing mistakes can sometimes result in Ohio residents being harassed by collection agencies for medical debt that they have already paid off. In addition to annoying phone calls, the mistake could show up on a person's credit report and lower their credit score. According to a study that was conducted by the Federal Trade Commission in 2012, 25 percent of consumers have at least one error on their credit report.
In the United States, nearly half of all accounts in collection are related to medical debt. Roughly 40 percent of all Americans say that their credit score is lower than it otherwise would be due to medical debt. Although steps are being taken to minimize the impact that medical debt has on an individual's credit score, some say that it shouldn't be taken into account at all.
There are many consequences that may occur as the result of failing to pay medical expenses in Ohio. Studies suggest that many individuals may face hardship and financial difficulties because of unpaid bills.
When faced with debt collection, people may sometimes assume that the debt is valid and correct. However, this is not always the case. Companies can make mistakes, and consumers do have the right to request proof that the debt is valid and should be paid. People who have questions about a debt must follow certain guidelines in order to avoid problems later.
A medical account that goes into collections could have a larger impact on an Ohio resident's credit than it should. According to the Consumer Financial Protection Bureau, a study of 5 million credit reports found that those who have an unpaid medical bill pay their bills on par with those who have a credit score 10 points higher. This disparity can be as much as 16 to 22 points for those who have paid a medical debt that went into collection.
Ohio residents who are struggling to pay off medical bills are not alone. A recent study conducted by Georgetown University and the Kaiser Family Foundation has found that one-third of Americans are having difficulty paying down medical debt. The existence of health insurance and differences in income don't seem to be factors, as even those with health coverage still find themselves facing medical expenses.
Ohio residents who are struggling with medical bills may be wondering whether bankruptcy can help resolve their issues. Experts say that bankruptcy should be a last resort, but that it can be an effective method of dealing with medical debt if there are no other options available. There are different types of bankruptcies, so choosing the right method depends on an individual's specific situation.
Personal bankruptcy is designed to give people who are overburdened with debt a fresh start in life. The two main problems people face that lead them toward bankruptcy are the loss of their jobs and medical bills. With the improving economy, it appears that fewer people need the relief that bankruptcy provides.
Medical debt is a problem for many Ohio families, putting pressure on a household's income in an attempt to keep up with the bills. In fact, according to a recently released survey performed by the National Center for Health Statistics at the U.S. Centers for Disease Control and Prevention, it's been found that in 2012, one in four U.S. families were having trouble paying their medical bills, and one in 10 were unable to pay their medical bills at all.
The economy has been hard on businesses and individuals alike, especially here in the Ohio manufacturing sector. Some workers facing uncertainty in the bankruptcy filing of an aluminum manufacturing company got a short reprieve when officials refused to allow the electric company to turn off power to the Hannibal facility.