After reaching a settlement with authorities in New York state, Equifax, Experian and TransUnion have agreed to change the way medical debt may impact an individual's credit score. In the future, the major credit bureaus will wait 180 days after a medical debt goes into collection before listing it on a credit report. This gives the insurance companies time to pay any portion of the debt that they may be liable for.
According to research done by the Consumer Financial Protection Bureau, an unpaid medical debt may be the sole blemish on an otherwise stellar credit report. Additionally, many who study this issue believe that unpaid or otherwise unresolved medical debts are unlikely to predict a person's overall creditworthiness. In many cases, those who have medical debts go into collection didn't even know that they owed any money.