Important Update: New Rules That Could Help You
In a previous post, we discussed the 2024 New York State law that helps protect people from medical debt. This law could help thousands of New Yorkers who struggle to pay medical bills.
This law prevents medical debt from affecting your credit score, and keeps hospitals from selling your debt to collection companies.
But There’s a Catch
This law doesn’t protect you if:
- You pay medical bills with a credit card (unless it is a card specifically designed to cover medical expenses); or
- You owe money to doctors or hospitals outside of New York
This matters because many people use credit cards to pay for everything, including medical bills.
What to Do If You Can’t Pay a Medical Bill
Step 1: Check Your Bill Make sure the bill is correct. Compare it to your insurance paperwork (called an “explanation of benefits” or EOB).
Step 2: Call for Help Contact both the hospital’s billing office and your insurance company. Sometimes they don’t talk to each other, and you may need to get them on the phone together.
Step 3: Think Before Using a Credit Card Be careful about paying medical bills with a credit card. Here’s why:
- You lose the protection from the new law once you pay with a credit card
- If you can’t pay off the credit card, you’ll owe even more money in fees
Warning: What to Look For
We are now seeing medical bills that include this warning message:
“Payment by credit card for services rendered by (health care provider) is no longer considered medical debt resulting in patients affirmatively losing the protections otherwise afforded under both federal and state medical debt laws…”
If you see this message, it means you’ll lose legal protection if you pay with a credit card.
Still Have Questions?
Contact Care Answered Reach out to us for guidance at www.careanswered.com.