Medical Debt Collection
Understanding Your Rights and Obligations

Medical debt collection is defined and regulated to a certain extent by many of the same laws that govern other general consumer debt. There are certain limits imposed on healthcare organizations and debt collection agencies.

Let’s get into some of the tips you can use to make dealing with outstanding medical debt easier for you and the healthcare professionals who were involved in providing the medical care.

Make Sure Bills Are Accurate

The first thing you need to do is make sure the debt you are being pursued to pay is in fact an accurate statement of the services you were provided. Erroneous charges, simple paperwork errors, or even a calculation mistake could get you billed for more than what you really owe. More often than not the initial billing will be very general in nature and require you make a request for an itemized bill before you will be able to confirm accuracy. Be firm and make sure you are issued an itemized bill for services.

If you are being asked to pay for procedures that you did not receive, there are two likely possibilities. Either the item added was the result of a clerical error on the part of the healthcare provider, or you are the victim of some form of identity theft or fraud. The use of one person’s identity to cover medical bills of another is a growing problem. In this instance, you should contact the medical services provider, credit reporting agencies, and the local police.

Debt Collection Agencies and Medical Bills

Handling a medical debt becomes a whole different ballgame if the debt gets handed off to a debt collector. Debt collectors tend to be far more aggressive in pursuing payment than a hospital or doctor’s office—but remember, your rights and obligations are clearly defined by law. The Fair Debt Collection Practices Act (FDCPA) does have provisions covering what a collection agency can and cannot do when they attempt to collect money. There are actions you can take to restrict their aggressiveness and limit their ability to harass you, at least temporarily.

Medical Debts and Insurance

Most people assume if they have good health insurance, medical bills will never be a problem for them. This is not always the case. Hospitals will sometimes bill you directly and this usually happens for one of two reasons. First off it can happen by mistake, you need to give your medical provider specific instructions on who to bill. Remember, it is up to you to make sure your insurance company gets billed, to make sure the bill gets to them in a timely manner, and see that the bill gets paid on time.

Another reason you can get billed directly is when your insurance company refuses to pay. You should review your health insurance policy on occasion so that you know exactly what services will be paid, how much they will pay for those services, and what things are not covered. It can come as a nasty shock to find that the particular procedure or treatment regiment you have just endured is not covered by your insurance. This will leave you to deal with the hospital or doctor directly when they request for payment. If you fail to pay, the bill could potentially be passed on to collection agency.

Even if the insurance company does cover your bill, you should stay on top of the process and carefully track all bills and payments just to make sure everything proceeds smoothly. You should be aware that if the hospital does not bill the insurance company within a specific timeframe after the procedure or treatment, the insurance company may refuse to pay.

Challenging a Medical Debt Collection

If a debt collection agency, or for that matter a healthcare provider, breaches the law in pursuing medical debt collection, you may be able to take legal action under the FDCPA. You can write a dispute letter requesting documentary proof of a collection agency’s right to collect the debt, after which they have 30 days to produce the proof. They are not allowed to contact you again until they do so.