Consequences for not paying a medical bill

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I'm not familiar at all with what happens when you don't pay a bill, so could do with some information on the consequences and process I can expect to go through.

Last year, one of my kids had their annual medical. We began to get a bill for a small amount that the insurance didn't pay out. The reason was that according to national guidelines, the test in question only needs to be carried out every few years and the doctor performed it too frequently.

We were not told that this item was not covered when the test was carried out. The doctor and facility were the same we had always used so should have known and told us.

Several weeks ago, the facility sent a letter telling us that they would pass this small amount to a collection agency (after I ignored their bills thinking they would write it off). We called the facility and explained that we never authorized any work outside of the allowance. They said they would get back to us.

That was several weeks ago. Today, I got another bill.

If I refuse to pay, what exactly happens when this goes to a collection agency. What adverse things can go on my record? Or can I contest it with the collection agency before any adverse record is made?

Is there any wording or message I can send to the facility to get them to write this off?
 
How about just send them a partial payment until the bill is paid? Maybe $10/MONTH

Otherwise your simply sticking them and I dont' do that so I wouldn't know how to lie.
 
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all this stuff goes onto your credit report. The end result is your credit score is affected.

If you don't ever need credit you're fine. If you need credit then not only does your score drops, but you also have the specific collection and what happened on your record.

You can dispute the record, but you should know the item will still be on your record but marked as as disputed, it doesn't go away.

Same as if they write it off, it doesn't go away either, but it's marked as a charge-off (unless you negotiate for them to close it in another way)

You have to understand that your credit report is just a public record about you.

A private company is deciding if they want to loan you money just based on your promise that you'll pay it back.
There is no set law that a company has to disregard disputed records or medical collections. They may treat it differently than a non-disputed record, but that's their own internal decision what they want to do.
It's their money and their decision to lend it to you based on your credit report.

Only certain protected things such as race, religion, age, and things like that are things they can't use in their decision to loan you money by law.


That being said, I think that given the disarray of the US healthcare insurance system, a lot of people have medical collections because it takes so much time to sort who's going to pay for things. So unless it's a high amount it;s not going to ding you too much and most companies may not count it as too important. but it's still a ding on your record
 
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You should call your insurance company to dispute the bill through administrative remedies. If you lose the dispute with your insurance company, you may want to have the bill reviewed by an independent medical reviewer. This process can best be explained by your insurance company.
 
Or you could go thru the appeals process with your insurance co. Just write a line or two saying the test was needed. They have to provide a response. After they write back and deny, say you want to bump it to level 2, when they deny that say you want level 3. Level 3 is a true independent review. They might decide to just pay it rather than dealing with you.
 
Offer to settle the "small amount" with a much smaller amount. Sounds like you technically owe it even though its a little shady. Doctors will test you into the poorhouse. You have to be aware of your coverage. A small medical bill on your credit likely isn't a huge deal but you may as well get it taken care of now instead of years down the road when it comes up at an inopportune moment.
 
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Google chargeoff. Theres plenty of explanations and techniques listed there.

But the point is even if they write it off and stop pursuing you,
You need to understand and be aware of the different ways they intend to close out your account and its effect on your credit. Again, only if you ever need credit in the future
 
So you got services and since insurance won't pay, you think dumping the cost on the Doctor and walking away is the right move?

Does your insurance plan documentation define the specific test as only being covered once every so many years? If the plan coverage definitions state it as such, IMO it's on you to know what your insurance does and doesn't cover and navigate properly... So you're on the hook.

But if it's not reasonably clear, I'd put it back on the provider,,saying that insurance gives guidelines and they didn't properly clarify. If they won't budge,,let it go to collection, and then appeal the strikes to your credit direct. A credit scoring agency must reply to the request, and IMO if you send them documentation from the insurance company that the test is not covered or recommended at the interval it was performed, I think the onus is then on the provider to prove otherwise. Then it starts to be a matter of timing and settlements which the provider must reply to in a timely fashion to prevent reversing the credit impact.
 
My credit score is around 830 and this amount in dispute is small. So it doesn't sound like this could make much difference to me.

I don't have any foreseeable need to apply for credit in the near future but I can't say I'll never want to apply for credit in the future at all.

So I think to be safe, I won't push it down that avenue.

I'll talk to the medical provider and tell them I will be contacting the state board since they carried out a medically unnecessary test.
 
Here is the problem sometimes collection companies buy bad debts and collect very hard it is sometimes better to make a deal with the company.. These "collectors" are sometimes very shady sometimes more shady then most of the doctors if that is possible... Just get rid of it if you don't know how to play the game.

Also other thing come into play when you have bad credit like the cost of your auto insurance.... Sad but true some ins companies think if you have a low credit score they can charge you more for insurance because you are then likely to be a bad driver.. At least that is their way of getting more money out of you. Then they wonder why everyone sues them for every little thing..
 
How much money are we talking about? Is it really worth devoting all that effort to avoid paying, or should you just pay it, move on and not get caught the same way again?

Your sig line may actually contain the best advice you'll get
smile.gif
 
You'll find that even though the doctor earnestly believes stuff is covered by insurance, you're ultimately on the hook. They (doctor and ins co) rigged the paperwork in their favor long before you came along.

Get on a payment plan before it goes to collections.

BTDT. Frosts me too.
 
In Florida it can't be used against you as long as you pay something. Even a ridiculously small payment keeps the collectors at bay if it is a legitimate medical expense.

Raising 3 kids as a single father I learned to call the billing party and negotiate. Got many bills carved down to nearly nothing. But I paid everything off, period.

Do not ignore it, as it will get you later...
 
Options:

1) Offer 10% as final payment and cleared off record. Collectors pay typically that for the "debt" they can chase
2) If it lands on report you can contest it. The person who reported then has turn up proof of the debt within 30days(does not always happen) otherwise it gets removed.

To those folks who think its cheating. If you take your vehicle in for a oil change and they add an alignment check just because do you just pay it. Nope....

Remember not all battles are worth fighting either. Debt collection must be incredibly hard these days with advent of so many communication means (cell, VOIP, forwarding #'s) if you have an unlisted #.
 
Originally Posted By: SteveSRT8
In Florida it can't be used against you as long as you pay something. Even a ridiculously small payment keeps the collectors at bay if it is a legitimate medical expense.

Raising 3 kids as a single father I learned to call the billing party and negotiate. Got many bills carved down to nearly nothing. But I paid everything off, period.

Do not ignore it, as it will get you later...


Yep, great advice.

Even hospital bills can be negotiated lower...
 
Collection agencies can be very, very annoying.

My father had an agency hounding him for a bill from several years back, a bill he never even remembered.

They called the kids, employment, ex wife, neighbors etc. Legal or not, they were very persistent, and I personally thought it was embarrassing.

Be prepared to explain yourself to EVERYONE when these calls start coming....

Oh yeah, this was last year, so any reform you may have heard about does not stop the calls.

Good luck if you decide to skip out!
 
You should have disputed it through your ins co at the time. You don't just ignore a bill and think it will go away.
 
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