Texas Unpaid Medical Bills: Your Rights for Debt Collection What You Should Know

Unpaid medical bills can be a significant source of anxiety for Texans experiencing financial woes. And regardless of how you got to that payment situation, whether it’s a factor of not having insurance, unforeseen medical costs or simply the inability to pay, unpaid medical debt can have serious consequences. And with the help of debt collection agencies, many Americans wonder what their rights are– and in particular whether they can be sued or even go to jail.

Can a Debt Collection Agency Share Treatment Details in Texas?

When it comes to debt collection in Texas, ensuring privacy is paramount. Medical debt collection is regulated on a state and federal level through the Fair Debt Collection Practices Act (FDCPA) which prohibits debt collectors from employing abusive, unfair or harassing tactics when attempting to collect debts.

But there are circumstances in which a debt collector can disclose treatment information. Debt collectors may not disclose personal medical information except under limited circumstances. The medical information that is needed for billing purposes usually comes from providers of the health services, not from debt collectors. Debt collectors are legally bound to respect confidentiality, and they cannot divulge sensitive personal information — which can include specific diagnoses or treatments — unless it is necessary to initiate legal actions or certain collection processes.

Texas Law on Unpaid Medical Bills: What You Should Know

The Texas statute for helping people with unpaid medical bills is straightforward relative that adverse information must be removed to protect the consumer. There are robust state consumer protection laws and the Fair Credit Reporting Act (FCRA) at the federal level. When you don’t pay your medical bills in Texas Healthcare providers and collections can act, but they’re restricted from operating in whatever manner they please.

One important thing to remember is that Texas has a statute of limitations on medical debt collection. In Texas, medical debt has a statute of limitations of four years. That means that for four years from the time the debt is incurred, a creditor or debt collector may not be able to get you in court and secure judgment on that debt.

A healthcare provider may send your own past-due bills to collections and the debt may appear on your credit report, but it can’t take legal action without following due process of the law.

Medical Debt Forgiveness Texas: Is It Possible?

There are certain instances in which Texas residents can be eligible for medical debt forgiveness programs. Typically, these programs come from hospitals, charities or government plans created to assist those who cannot afford medical bills. For example, the Texas Medical Assistance Program (TMAP) provides help for low income individuals who need help with medical bills.

Moreover, certain hospitals may offer their own financial assistance plans in which patients are eligible to discount or eliminate medical bills based on their income. By law, hospitals and health care providers need to inform you of these programs and provide help if they apply.

If you wish to use medical debt forgiveness in Texas, the key is to talk with your healthcare provider as soon as possible after realizing you can’t afford to cover your bill. Not acknowledging the debt could affect your ability to qualify for these programs.

Can You Go to Jail for Not Paying Medical Bills in Texas?

The Texas statute for helping people with medical bills And the short answer is, no, you can’t be thrown in jail just for not being able to pay medical debts in Texas.

If you do not pay your medical bills, you can face severe financial consequences: wage garnishment and negative entries on credit reports are just the beginning of a potentially long journey spiraling downwards. If you did not, my friend that was dumb but the only way you can go to jail over a debt is if it involves contempt of court for failure to follow a Court Order which typically means that you used some assets to purchase an Engagement Ring or something else after getting sued.

In Texas, people cannot be jailed for failing to pay medical debts. Should a hospital or medical provider take you to court over unpaid bills, you have the right to challenge the debt in court. If you don’t pay, you may be hit with a judgment against you, but it won’t send you to jail.

Unpaid Medical Bills Consequences: What Happens If You Don’t Pay?

When you fail to pay your medical bills in Texas, there can be several consequences. These include:

Debt Collection

You may contact you or a collection agency with respect to any unpaid balance. If left unchecked, this can lead to a series of phone calls, letters, and possibly even some less-than-violent attempts to collect on the debt.

Credit Report Effects

A non-payment of any medical bill can be reported on your credit report, and result in lowering your credit score. Lower scores can make it more difficult to qualify for loans, mortgages or rental agreements.

Legal Action

If a certain amount of time elapses and the debt is not paid, it is possible for a healthcare provider (or collection agency) to go to court as an attempt to be paid. That could lead to a judgment, which can create the possibility of garnishing your wages or taking property.

Interest and Late Charges

Over time, unpaid medical bills can add up with interest and late charges, expanding the debt balance to such an amount that it becomes hard to handle.

To prevent those outcomes, it’s critical to tap your health care provider and explain your financial situation. There are often payment plans or reduced payments that providers agree to.

What Is the New Law About Medical Bills on Credit Reports?

In 2022, a new law changed the way medical debt is reported. The new law regarding medical bills on credit reports affects how medical debt is reported, and when it can appear, on your credit report.

Under new rules from the Consumer Financial Protection Bureau (CFPB), medical debt will no longer be able to hit your credit report until it has been in collections for one year. This provides consumers with additional time to deal with the medical bills prior to they hit their credit score. Also, if a debt is paid off or settled it will no longer be reported on your credit.

This new legislation protects Americans from medical debt that may be unrecoverable and for which they should not be punished. But you still may want to move quickly, so you can avoid having bills go to collections — not that a year of unpaid association bills would necessarily harm your credit or leave you out on the street.

Can a Hospital Sue You for Unpaid Medical Bills in Texas?

Yes, you may be sued by a hospital for unpaid medical bills in Texas if you pay them. The health care provider can sue you if a medical bill has been sent to collections and the balance due isn’t paid. If the debt is significant, the hospital could sue you to get a judgment against you.

If you are being sued, then you can dispute the debt and the hospital will have to show how much you owe in court. If the court decides in the hospital’s favor, a judgment may be placed against the debt and you will have to pay via wage garnishment or other legal methods.

But hospitals must give patients comprehensive information about their financial assistance programs and potential options for debt reduction before they take you to court. If you do not have the means to pay your bills, be proactive in talking to your health-care provider before you end up in court.

The Medical Debt Forgiveness Act: How It Can Help

And in recent years the Medical Debt Forgiveness Act has been brought forth to relieve people from carrying medical debt. This bill seeks to alleviate the impact of medical debt by creating forgiveness programs, particularly for those with high medical costs.

The purpose of the Medical Debt Forgiveness Act is:

• ✦ Help low income people pay down or eliminate medical debt.
• ✦ Incentivize hospitals to provide financial assistance to patients.
• ✦ Don’t allow medical debt to damage your credit score in the long run.

Although the bill is still being debated, it represents an important move toward combating the epidemic of medical debt throughout the United States — including Texas.