Paying Medical Bill
- Paying part of another's medical bill probably will not obligate you to pay all of it.
- Beware guarantor contracts when you check someone into a hospital.
- Medical debt collectors may suggest you have an obligation to pay someone's medical debt.
Will my paying part of my sister's medical bills obligate me to pay all of them?
My youngest sister was visiting me in LA (she lives in IL) and had an emergency appendectomy while uninsured. She now has a large pile of medical bills that she is gamely trying to pay off and I would like to help her. If I make regular payments on her bills in my name, could I be held responsible for any or all of the balance if she's unable to pay? She's getting billed on multiple accounts if that makes any difference - my thought is maybe I could take resp. for at least one at a time.
The short answer to your question about paying your medical bills is, "Probably not."
The complete answer is slightly more complicated. Let us look at two situations where a person can assume liability for another’s debts.
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Two Hypotheticals: Creating Liability for Medical Debt
First, let us say Person A is ill, and Person B brings A to the emergency room. While A is in ER triage, a hospital employee gives B a guarantor contract, which B signs. A guarantor contract says, in effect, "I will pay the medical bill if the patient doesn’t." In this situation, B is obligated to pay A’s medical bills if A refuses to or is unable to.
Second, let us say Person C has not paid their medical bills, and is about to be sued by a medical service provider. Person D learns of C’s issue, and contacts the provider. D promises the medical provider he or she will pay the bill if the provider promises to drop the lawsuit. In this situation, D has liability to pay that provider because the provider asked for a dismissal of its case in reliance on a promise made by D.
Here, you did not mention any promise you made to any medical provider to pay your sister’s medical bills. Absent a promise to pay, your paying part of one of your sister’s medical providers, or even all of one provider’s bill, does not create a legal obligation to pay more. You may find a creative and unscrupulous medical bill collector will tell you that your paying part of your sister’s bill creates an obligation on your part. If someone makes that claim, laugh and tell them they are full of nonsense.
I hope this information helps you Find. Learn & Save.
Did you know?
Mortgages, credit cards, student loans, personal loans, and auto loans are common types of debts. According to the NY Federal Reserve total household debt as of Q4 2022 was $16.91 trillion. Housing debt totaled $12.26 trillion and non-housing debt was $4.65 trillion.
According to data gathered by Urban.org from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 10% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.
Each state has its rate of delinquency and share of debts in collections. For example, in Nebraska credit card delinquency rate was 3%, and the median credit card debt was $463.
Avoiding collections isn’t always possible. A sudden loss of employment, death in the family, or sickness can lead to financial hardship. Fortunately, there are many ways to deal with debt including an aggressive payment plan, debt consolidation loan, or a negotiated settlement.