Surprise Medical Collection after clearing credit

[Sputnikk23]

Hi,

I'm a newbie to all this stuff but I've used the resources I found on this site to get my credit cleaned up, and successfully I must say. Most of my stuff has been deleted, aside from a single collection that reports differently to all three and even reports the same acct (or one number up) w/ different amounts, twice. I'm trying to negotiate for a PFD on that, since it's only 90$ and I'm trying to purchase a home soon. I've even got some 0% transfer offers that put my high balance cards on since I've cleared up my credit.

I've suddently received a collection notice for a medical debt back from 2005. At the time, I was working in Maryland but living in Pittsburgh and had to visit an Emergency Room. The amount, $500, is for the ER Co-pay. I haven't DV'em them yet. Assuming its valid, I'd like to keep them off my credit report. I've heard that if I make any payment on a medical account to a CA, even if its $5/month, they can't report... is this true? Are there any other methods I could keep them from reporting?

DV'ing would give me at least 30 days...

Any advice appreciated.

[old5chool]

Don't believe the $5 deal. The collection agencies have a right to settle with you on their terms if the debt is valid. I would send them a negotiation letter.

1. Tell them you will send them a letter with a check in it for the amount of (let's say 20%) of what you owe them.

2. State that you do not agree with the collection amount but that you are willing to settle with them for (20%) of this amount if they will remove or not list this collection on your credit report. Make sure you tell them you will need this in writing.

3. Tell them that the next letter you will send them will have a check for the stated amount and by them cashing it, they are agreeing to accept your request as paid in full and that they will not report it to the credit bureaus and will no longer pursue this debt.

P.S: Most (80%) of collection agencies settle for 33% of the amount owed.

See the collection agency has a few options here:

1. Collect some money from you.

2. Collect $0 from you.

So, THEY WILL MAKE A DEAL with you. Ask the collection agency if they are licensed to collect in your state. Are they able to collect this debt? This is your right ASK ASK ASK.

Try it you may be suprised. Email me if you have any additional questions.

Disclaimer: Although this post was written by a qualified credit repair agent, it is not meant as legal advice or analysis and should not be taken as such.

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[Jacque50]

advertising is not cool...........

[legal_loansharking]

First off 500.00 for a ER co-pay doesnt seem correct.

Call them and really find out what it is for. If its in the hands of a collection agency DV them immediately. If its the hospital billing dept, try to work with them to resolve the bill, by calling your insurance company and seeing why they only paid so much, with hosiptal paperwork, if every I is not dotted and every t is not crossed they kick back the claim.

If in the end you owe it, pay it. Medical bills are much different than credit cards and such. If you honestly owe it you pay it,

If it was for a credit card and the debt was sold to a JDB, it is a whole different ballgame.

[retmar]

Before you do anything else, stop.

If there was a health insurance in effect at that time, an EOB was sent to you. If this is true, contact the insurance and ask for a copy. You are only liable for the amount shown as copay/co share/patient's responsibility. No more. What this means is, let's say the claim was denied due to deductible not met. On the EOB it shows an amount billed and amount allowed. You are only liable for the allowed amount, not the other. If they try the other, it is considered balance billing and is a violation of federal law.

As to the reporting question, if the communication you have is written, and no claim as to "we may report negative . . . . " is present, say nothing and wait. After maybe 60 days, pull your CR. If a TL is present, note "first reported". If reasonable time has passed, such as 60 days, nail them for a FCRA violation.

And, lastly, there is no law that can force you to deal with a CA. They can't force you to deal with them, either. Therefore, you can write a letter to them telling them to C&D as you refuse to deal with them, but, will deal with the OC. If you go this way, let us know for more info.

[Sputnikk23]

Date of service 12/02/2005

500 is right.. piss poor health insurance at the time.. that was my deductible. That was the midplan available to us. Lowest was 250, high plan was 1000 ER Co-pay. Screw UHC and my previous employer.

"Above referenced past due account owed to MEASE COUNTRYSIDE HOSPITAL has been sold to Consumer Solutions NPL-NF LLC. Capio Partners has been contracted to collect the outstanding balance."

"You will find that we are reasonable people to deal with. However, you must make an effort to pay off your debt"

"If you do not pay this account within 40 days from the date of this letter or dispute the validity of this account as provided on the reverse side of this letter, a negative credit report may be made in your name with one or more credit reporting agencies."

The BACKSIDE says the standard: "Unless you notify this office within 30 days after receiving this notice that you dispute the validity of this debt or any portion thereof, this office will assume this debt is valid. If you notify this office in writing within 30 days from receiving this notice that you dispute the validity of this debt or any portion thereof, this office will obtain verification onf the debt or obtain a copy of a judgment and mail you a copy f such judgment or verification. If you request this office in writing within 30 days after receiving this notice this office will provide you with the name and address of the original creditor, if different from othe current creditor."

"This is an attempt to collect a debt. Any information ...."

[isislc]

Now this is interesting, if you were working in MD and had the service done there, their SOL is 3 years yet you have 40 days to dispute the account which would place it past SOL. Hmmmm.....

[retmar]

The SOL of the resident state takes precedence, so, that idea is out.

It doesn't matter what this $500 is for. What matters is what is on the EOB. I have to assume you gave them your insurance info, which all of us do, no matter if deductible is involved or not, otherwise, how would you ever make your deductible to get them to pay anything. Thus, they have billed your insurance and have received the info as to why they were not paid, or, received a lesser amount. Under federal law regarding Balance Billing, you are not liable for any amount other than what is shown on your EOB as you copay/costshare/patient's responsibility, period. No other items may be billed. This also means that if you were billed for a noncovered treatment, did they follow your insurance requirements. If not, they cannot bill you. To include, if this was the case, you would only be liable for the amount allowed, not billed.

In short, you need a copy of the EOB for that visit. See what it says is due from you. If it says you are to pay the $500, then, you would owe it. BUT, if it shows this, you must call the insurance back and assure that any bills following this one did not have any funds deducted to cover deductible. Get all of your numbers together before you move forward. The insurance can give you the figures over thephone, but, it will take up to two weeks to get the copy, in most cases.

Since this debt has been sold, the OC is out of the picure altogether. Here also you must realize they paid pennies on the dollar for it. Get the info from your insurance, look it over. Then you can compose a letter offering to pay a percentage of the amount they claim. Here also, you could look for violations to use as leverage to get a decent settlement. Let us know.

[Sputnikk23]

Should I DV them in the meantime to keep them off my credit report?

[retmar]

The DV will not stop them from reporting. All it will do is require that, if reported, they note the TL as "disputed" until valaidity of debt is proven.

As to stopping the reporting, what you can do is look over each piece of written communication from them to see if anywhere the words "We may report to . . ." are present. If not, and they reported, wait at least 60 days, then nail them for not notifying you as required by FCRA 623. If your state has a written requirement, use it also.

[Sputnikk23]

wow. Pardon my ignorance, I thought DV'ing kept them from reporting (they haven't yet) until they validate, otherwise they violate?

I'm pretty sure I actually owe it. Still haven't gotten my EOB yet. Should I just proceed w/ settling and offer 50% before they report?

[Sputnikk23]

bumpety.. really would like to know how to proceed

[retmar]

If you are awaiting an EOB from your insurance on this specific claim, I must ask why didn't you ask for the particulars, such as why denied. You could have reponded to the CA with the info by including the date, time, name of person you spoke to, and their response to your inquiry. Then include as to upon receipt of the EOB you will forward immediately. Now, you must wait for the EOB to find your best avenue of approach. As I said before, if an EOB exists for this "visit", you are only liable for the amount it shows as your copay/cost share/patient's responsibility, period. You need to know this and prove this before you take next step.

Yes, you could DV them to assure that if they report, it is reported as "disputed", but, my opinion is to wait for the EOB, and respond accordingly. Understand that they would probably only send you a copy of the statement which would show the date of service, amount billed, including a possible breakdown of charges, date claim processed to insurance, date of denial, and adjustments made. The problem here is were the adjustments correct?

[Sputnikk23]

I understand now.. thank you for the honesty.

Again, pardon my ignorance, I didn't connect in my head I should have notified the CA about my contact with United HealthCare regarding the EOB.

And as far as why denied, again, patient responsible for co-pay?

I will definitely update this thread once I receive the EOB.

Thanks for the advice again. Worth millions.

[retmar]

Not a problem, just let us know.

And, above all, you are not ignorant. Always remember that the "stupid" question is the question not asked.

[Sputnikk23]

Well, no EOB exists for that date of service.

The CA is willing to settle for %50.

I'm confident I actually owe it (again, my company had 3 plans at the time: high premium - 250 deductible; medium premium - 500; low premium - 1000; glad i found a new employer).

I'm thinking I should settle?

[retmar]

I can only assume by your last comment that you did not give the provider your insurance info. That was a gigantic OOPS! on your part. By that, you more than likely paid more in health care for the year than you should have. Reason being is that amount was not figured into your annual deductible.

You could tell them you gave the provider your insurance info, but, when checking with your insurance for the EOB for that treatment, you found they never billed. Now, they must bill your insurance, and, you will pay the amount shown on the EOB as to your copay/cost share/patient's responsibility. Discuss with your insurance as they can help you with this.

Why you need to do this is that you do owe the balance due, but, not the balance they claim. Remember, when they bill, they bill for so much. Your insurance adjusts that to a previously agreed "allowed amount". This is the most you will be liable for. Now, if they did have the info and failed to bill, you are not liable as they failed to bill within the agreed parameters of accepting assignment.