Half of all overdue debt on credit reports is from medical debt: A staggering 52 percent of all debt on credit reports is from medical expenses. When a debt is past due, a collector may report the consumer’s account to a credit reporting agency. On the consumer’s report, this item would appear as an account in collections, resulting in a credit score drop.
Medical bill fraud has victims and can occur in a variety of ways. 1. Code Misrepresentation The physician performs service A, but submits a bill for more expensive procedure B, or A and B. 2. Fraudulent Observation or Cloning More elaborately, a false set of observations or other materials is provided, sometimes from another patient. [...]