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I take exception to most of this statement. My story: At 25 years old, I took every penny I had in savings (about $300k) and started a company. I "created" 7 well-paying jobs. I put every single penny I had into my company. I had "major medical" insurance, which I paid about $600 a month for.

Two years later, we were doing about 2 million a year. Still, I poured every penny I had into the company "creating" additional good-paying jobs. Then I had a stroke. Yes, at 27. Because the doctors could not find a "reason" for my stroke, the insurance company paid a grand total of $2700, mostly for the ambulance and the care I received in said ambulance.

I was left with a bill of $67,000. Yes 3 zeros. Because of how long I was in the hospital and recovering, and because my business was based on relationships with my clients, the business faltered, and I eventually shut it down. I am now paying off every cent of what I owed on the business, as well as that $67k in medical bills.

Moral of the story: don't think you're invincible because you're young, or because you don't have a pre-existing condition. Also, I can absolutely assure you that medical debt DOES affect your credit.

Here's the crazy part. I'd do it all again in a heartbeat, and I will.

I'm assuming you did not have group insurance at some point so it was deemed preexisting? Otherwise, how did they get out of paying for it?

At 21, I had a 'spontaneous pneumothorax', or collapsed lung, which was not due to any sort of accident or trauma, but 'just happened'. I was in good shape, going for regular bike rides, didn't (don't) smoke or do drugs, and was generally very fit and healthy. Luckily insurance covered it, but I think the total bill for the week in the hospital and operation was something like $20,000, and it took me a few months to really get back into the swing of things.

I'm older, have children, and have been in two car accidents (one very serious) because someone else was being stupid (and uninsured).

Having treatment refused to my children because they are not insured (or not insured enough) is quite frankly terrifying. The system standing between me and medical machines and professionals is damn near random and I find it terrifying. Enough that I've had serious pause when striking out on my own.

Not everyone who starts startups (or other business) is 23 and single.

"Also, I heard from a friend (who is very probably wrong about this) that you don't actually have to pay off a hospital bill. It won't count against your credit score. Is this true? I would never do something like that, but... if not paying the bill doesn't count against your credit score, then I can see why people might not pay it."

Your friend is wrong. Google "medical bankruptcy".

I'm 23, healthy, and took a bad spill a few weeks ago. Nothing too serious, but it did require some stitching.

Total bill? $1553.

This is a very significant sum for people with regular, consistent income. For someone subsisting on ramen to launch their next great idea, this is crippling.

Also, I highly doubt the credit score thing is true.

If you don't even have major medical, you're gambling with an almost unlimited downside. And it's not just you who will pick up the tab if you lose. If you have a serious enough accident, you'll become one of the people who are causing healthcare costs to rise for everyone else.

>> Unless you have some kind of condition

Apparently, a lot of people do... otherwise the nation wouldn't spend such a large percentage of the GDP on medical care.

Be thankful you're not old, yet.

Yeah, some kind of condition? I'm made out of meat, doesn't that count?

It does affect your credit, in some cases, even IF an insurance company steps in (or fails to).

I got in a car accident in 2000, other driver at fault. Their insurance company agreed to pay the medical bill. I didn't realize until 3 years later, when the collection agency tracked me down, that they never did. That crap finally fell off just a few years ago, but cost me who knows how much in added interest rates over the years.

Not having health insurance is pretty stupid, even if you're healthy, young, broke, and in college. If you're starting a company, it's just completely irresponsible.

I don't think your conclusion follows from your story.

Last summer, my aunt was crossing the street in NYC and was hit by a cyclist. She landed on her head and ended up spending days in a coma, weeks in a hospital ward, months in physical therapy, and a six-figure medical bill. Fortunately, she had insurance. (If she didn’t, would she have received all that physical therapy, or would she have been discharged as soon as she was capable of walking out of the hospital under her own power, even if she was incapable of getting a job or caring for her children?)