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The insurance company agrees to cover the cost of certain benefits listed in your policy.

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Equifax did a study on medical billing and found that hospital bills totaling $10,000 or more had on average $1300 of medical billing errors on them. Does health insurance cover past medical bills? Do medical bills appear on credit reports? Understanding a health insurance policy requires translating insurance industry jargon into plain english. According to the federal reserve, the credit scores of two in five americans were negatively affected by medical bills.

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