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Medical debt is a fact of life for millions of Americans, and the numbers are staggering.

Roughly 20 million adults owe at least $250, while the total medical debt owed nationwide exceeds $220 billion. Fourteen million adults owe more than $1,000, and about three million carry medical debt over $10,000 [1].

Surveys show that nearly 79 million Americans have struggled with medical billing problems or are paying down medical debt [2]. And errors are common, and disputes happen frequently: Medical debt in collections is challenged almost three times more often than credit card debt [3].

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These disputes can start with something as small as a clerical error.

In one mother's case, her 9‐year‐old son ended up with a $3,000 bill after a specialist's office completed testing and her insurance denied the claim. She qualified for financial assistance that would have reduced the bill to $450, but the application required the responsible party to be over 18. She tried getting herself listed as the responsible party, but three months later the debt was sold to a collection agency, still in her son's name.

When debt collectors chase the wrong bill

This kind of situation happens more often than many realize. Federal law under the Fair Debt Collection Practices Act (FDCPA) prohibits collectors from pursuing debts without proper verification, misrepresenting amounts owed or attempting to collect for services not actually provided.

The Consumer Financial Protection Bureau has also warned against double‐billing and inflated charges in medical debt collection. Collectors are required to have documentation that supports the debt and to stop collection efforts if the consumer disputes it in writing within 30 days.

Yet, many people find themselves facing collection efforts even when the bill is clearly wrong. Sometimes providers submit outdated or incomplete records to collectors. In other cases, debt buyers try to collect the full face amount even if the underlying bill should have been adjusted for financial assistance or insurance coverage. Some consumers have reported being pursued for services they never received, bills already paid or debts linked to the wrong person entirely.

Inaccurate billing can damage a consumer's credit, cause financial stress and take months or even years to untangle. That's why it's critical to understand how to spot errors - and dispute them effectively.

Read more: How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement

Making sure your medical bill is right

The first step in protecting yourself is to review your bills closely. Compare the services and dates listed to the care you actually received. Look at how your insurance processed the claim and whether the denial reasons make sense. Check that the responsible party is correctly identified - particularly when a child has received care. If a bill is in a minor's name, that alone should prompt immediate follow‐up to have it corrected.

In this mother's situation, the bill should never have been issued in the name of a 9‐year‐old.

If you believe there is an error, you must dispute it in writing. Address the letter to the provider's billing office and outline the mistake clearly. Request an itemized bill and a copy of all insurance correspondence related to the claim. Keep copies of everything you send and note the date. If you qualify for financial assistance, follow the application instructions exactly and provide proof of eligibility.

Persistence matters. If you do not receive a timely - or any response, escalate the matter. Sometimes contacting the provider's compliance department or your state's department of health can help move the issue forward.

This mother should also make it clear that she is not refusing to pay. She is willing to settle the account for the correct amount once the billing is fixed. This stance is important because it shows good faith and makes it harder for the provider or collector to paint her as uncooperative.

If the provider agrees to correct the bill, she should request that the collection account be recalled and that the revised bill be sent directly to her. She can then pay the reduced amount and request written confirmation that the matter is closed. Throughout the process, she should keep detailed records of all correspondence and phone calls.

If the provider and collector continue to demand the full amount under the child's name, she can file a complaint with the Consumer Financial Protection Bureau or her state attorney general. Both agencies have authority to hold potential violations of federal and state debt‐collection laws to account.

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[1]. Health System Tracker .“The burden of medical debt in the United States”

[2]. The Commonwealth Fund .“Survey: 79 million Americans have problems with medical bills or debt”

[3]. The Commonwealth Fund .“The federal rule on medical debt”

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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