Had a similar medical bill story from when I was a poor student: Medical center told me that insurance would cover an operation. They failed to mention that they were only talking about the surgeon’s fee; the hospital at which they arranged the operation was out-of-network and I was stuck with 50% of the facility’s costs. I explained my story to the facility. They said I still had to pay but that a payment plan would be possible, and that I could start by paying a small amount each month. I took that literally and just started paying a (very) small amount monthly. At some point they called back to tell me to formally arrange a payment plan through their online portal, which gave me options with such high interest rates that there was no way my future earnings would increase at a fast enough rate to make a payment plan make any sense whatsoever. I called back and explained this, and said that if those were the only options I guess I would just have to try to scrape the money together now, and that I was prepared to try to do this. The administrator, bless her heart, asked me to hold for awhile, and eventually came back to say “I’ve spoken with my colleagues, and your current balance owed to us is now zero dollars”.
This (along with a few other experiences in my life) has underscored how sometimes an apparently immovable constraint can evaporate if you can manage to talk to the right person. That said, I felt very lucky to have been taken pity on in this way—I feel like having one’s balance explicitly zeroed out in this way is rare! But it’s interesting to hear that Zvi knows of cases where someone just didn’t pay, with no consequences. I would have assumed that they’d normally report nonpayers to credit agencies and crater their credit scores after long enough, as it costs them nothing or almost nothing to do so. Would be interested either to hear other people’s anecdotes of what happened after nonpayment of a large hospital bill (positive or negative), or to see data on this if anyone knows of any.
Had a similar medical bill story from when I was a poor student: Medical center told me that insurance would cover an operation. They failed to mention that they were only talking about the surgeon’s fee; the hospital at which they arranged the operation was out-of-network and I was stuck with 50% of the facility’s costs. I explained my story to the facility. They said I still had to pay but that a payment plan would be possible, and that I could start by paying a small amount each month. I took that literally and just started paying a (very) small amount monthly. At some point they called back to tell me to formally arrange a payment plan through their online portal, which gave me options with such high interest rates that there was no way my future earnings would increase at a fast enough rate to make a payment plan make any sense whatsoever. I called back and explained this, and said that if those were the only options I guess I would just have to try to scrape the money together now, and that I was prepared to try to do this. The administrator, bless her heart, asked me to hold for awhile, and eventually came back to say “I’ve spoken with my colleagues, and your current balance owed to us is now zero dollars”.
This (along with a few other experiences in my life) has underscored how sometimes an apparently immovable constraint can evaporate if you can manage to talk to the right person. That said, I felt very lucky to have been taken pity on in this way—I feel like having one’s balance explicitly zeroed out in this way is rare! But it’s interesting to hear that Zvi knows of cases where someone just didn’t pay, with no consequences. I would have assumed that they’d normally report nonpayers to credit agencies and crater their credit scores after long enough, as it costs them nothing or almost nothing to do so. Would be interested either to hear other people’s anecdotes of what happened after nonpayment of a large hospital bill (positive or negative), or to see data on this if anyone knows of any.