• Angel Callaway, CPC, CPB

Are Collection Agencies Worth The Cost?


The three major credit bureaus have announced they will be removing medical collections debts from consumer credit reports effective July 1, 2022.


This change will erase nearly 70% of medical debt from credit reports.

  • Paid medical collection debts will not be included in credit reports

  • Unpaid medical debts will not be reported for 1 year

  • The change allows consumers more time to work with their insurance and providers to address the debt before it is reported.

  • In 2023 Equifax, Experian and TranUnion will no longer include medical debt under $500.00 on credit reports.

With the new changes being adopted by Equifax, TransUnion and Experian, is it worth turning over your debts to a collection agency? Most uncollected medical debt is under $500.00 and will no longer be eligible to report to credit bureaus. In the long run, it may cost you more to utilize a collection agency for smaller debts.


Most patients have debit or credit cards that can be used to implement Card on File (COF) policies that allow patients' balances to be charged against the card. Patient balances should be addressed at each visit to prevent the balance from growing and becoming difficult to resolve.


Discussing current balances with the patient and setting up payment arrangements with the patient may be the best solution to resolve the outstanding balances. With COF policy in place, you and the patient can feel confident that balances are being addressed.


Does your practice have a COF policy in place? If not, Apex Practice Solutions can assist with implementation and setting up payment plans on your existing outstanding balances.

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