Medical bills can wreck credit, even when paid off

http://hosted.ap.org/dynamic/stories/U/US_MED_MEDICAL_DEBT_SURPRISES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-03-04-13-39-57


***
Medical bills make up the majority of collection actions on credit reports, and most are for less than $250, according to Federal Reserve Board research.

***
It's a problem for insured and uninsured alike. Outright billing mistakes, confusion over whether a claim will be paid by insurance and disputes between insurance companies and doctors - all can lead to medical bills being sent to collection agencies.
***

For Illinois breast cancer survivor Lisa Lindsay, a $280 medical bill led to state troopers showing up at her home and taking her to jail in handcuffs.
***

Barnes, the Texas veteran, said he and his wife have learned something: how quickly medical bills are sent to debt collectors. "It will really happen in a blink of an eye and you won't even know it."