call today

(856) 988-9055

New FICO rules may not help everyone

New changes in the way FICO scores are computed could mean that some New Jersey residents will see an increase in their credit scores. With the new formula, outstanding medical debts will make less of an impact on scores and paid medical collection accounts will not be factored in at all. According to FICO's director of public relations, the existence of medical debt is not a reliable indicator of whether a person is a good credit risk. Though the changes are designed to prevent an unnecessary … [Read more...]

New FICO scoring to deal with medical debt

The new method of FICO scoring may be good news for some residents of New Jersey as well as nationwide. The goal is to omit any medical debt presently taken into consideration and help the consumers boost their credit ratings. It will also ease the process of assessment by the banks of one's creditworthiness when applying for a loan. Under the new scoring model, all overdue medical payments or those who have already been settled will not be included in overall scoring. As a result, the credit … [Read more...]

How medical debt affects credit scores

New Jersey residents who are in poor health may have some unpaid medical bills, and if the bills are not paid in a timely manner, the debt may eventually be put on the credit report as an outstanding collection. A recent government report shows that the medical debt appearing on credit reports may have a more adverse effect on overall credit score than other types of debt. A recent article suggests that medical debt is not like other outstanding balances. Unpaid medical bills typically reflect … [Read more...]

Medical debt and credit reports

The case of a 67-year-old man who saw his credit score drop to 660 due to an unknown medical debt is a common one in New Jersey and around the country. His story began when he had a stroke in June of 2012 and was admitted to a hospital for treatment. Although his insurance covered most of the cost of treatment, he was sent a room charge of $640. He claims that he contacted the hospital and settled the bill for $128, which is what he says he owes under Medicare. That amount would be the 20 … [Read more...]

Prescriptions and medical costs often lead to bankruptcy

New Jersey residents may be interested in the findings of a 2013 report about the causes of bankruptcy in the United States. According to the report, the single leading cause of bankruptcy filings is medical debt. A large portion of medical expenses are for prescription drugs, and while the Affordable care Act is giving more people access to health insurance, costs for prescriptions remain high for many. Although more people are getting insured under the ACA, co-payments for prescriptions can … [Read more...]

Rise in unpaid medical bills causing upfront payment requests

With the pricy cost of medical care these days in New Jersey and around the country, medical debt is a serious possibility for almost anyone. Unfortunately, accidents that result in injuries can happen unexpectedly, and sometimes, unexpected health conditions occur.  Recently, one sports and medicine center has started to reevaluate their methods for billing clients for medical bills. The doctors at the medical center initially tended to wait approximately 180 days before billing patients. … [Read more...]

Medical debt problems common in the U.S.

Receiving care from a doctor or hospital can have rather large bills attached to it. Even with insurance, such bills can lead to a person having a rather significant amount of medical debt. Struggles with medical debt are a very common thing here in the United States. According to researchers with the Georgetown University Health Policy Institute and the Kaiser Family Foundation, around one-third of Americans experience such struggles. There are some things individuals can do to try to prevent … [Read more...]

How a forgotten medical bill could harm your credit

As we reported last month, medical debt is quickly becoming one of the top reasons Americans are filing for bankruptcy protection. One of the main reasons for this is that health care costs are rising and insurance companies are often requiring higher deductibles and co-pays to offset their costs. As a result, spending on health care tripled for individuals between 1990 and 2012, the Centers for Medicare and Medicaid Services reported. Additionally, most doctors in the past worked for … [Read more...]

Increased medical debt may lead to bankruptcy

Medical bills are currently one of the top financial stressors for residents of New Jersey, and excessive medical debt is quickly becoming one of the foremost reasons for bankruptcy across the country. One car accident or serious illness can add up to thousands of dollars in bills, and even those with insurance can find themselves struggling to repay medical debt. Many are surprised at the amount of money proper medical care takes, even after insurance pays its part. According to the Centers … [Read more...]

Affordable Care Act may not help prevent medical debt

Although the Affordable Care Act is designed to take the burden of medical expenses off of those that were previously uninsured, medical debt may still continue to be a problem. The ACA will protect many, but the plans do still come with deductibles and costs that those covered will be expected to pay out-of-pocket. The current average deductible for the 34 states covered under the federal exchange is $3,000. For those signing up for the bronze plans, the deductibles can be over $5,000. The … [Read more...]

contact the firm