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State took over medical bill


kleep
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My mom had to see a Physical Therapist. Even with insurance, the bill ended up being several hundred dollars. She couldn't pay at that time. Now she is receiving collection letters from the Kentucky Department of Revenue. They are threatening her with a lien for an amount greater than her bill (no idea what it includes - other than PT bill).

They have called the PT's billing office and they did not know this was possible. Yet the state has definitely persuing this.

I didn't know this was possible!?! I have never heard of a State taking over recent collections from medical providers. There has been no lawsuit. Can you treat the State as a CA and DV the debt? Calling gets you nowhere - any suggestions on where to go next?

By the way, because of medical expenses, loss of job, and "still" pending disability, my mom is considering bankruptcy. At this point, I don't think it would be a bad move, but I'm unsure how this debt (or soon to be lien) will pan out even there. And ideas you folks have would be very helpful.

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pretending to be an arm of the state with their name!

This is a mega violation of FDCPA!

I can't see how state is involved (for real) unless you have state funded insurance or the medical provider works for the state.

I just had a debt collector call me and claim to be the "legal mediator" for my "pre-litigation matter."

Got it on tape, I'm suing. No debt collector can pretend to be an arm of government or the courts when they are not!

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Sadly, it is the actual State - letterhead, official number, and all.

The medical facility is under a State University, but they were baffled about this and claimed that it went back to a separate billing place. They really confuse my mom when she talks to them and they have to have something in writing to talk to me so I, too, am a bit confused on that end.

I just can't believe the State is involved - especially when there isn't a court case involved. It isn't even old enough for that to have happened.

I don't really know what all they're billing for - if it's just legal/handling fees or if there's more involved. I don't know if we should send a written request for an itemized statement, something akin to a DV, or something else entirely. I had just never heard of this and wondered if anyone else knew how to handle it.

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The medical facility is under a State University, but they were baffled about this and claimed that it went back to a separate billing place.

This could actually be legal. Since the facility is owned by the state, the fees are due to the state.

This would be similar to owing tuition to a state owned school and not paying it.

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That is a good question.

In most states medical debt cannot be liened, levyed, or garnished without a judgment first.

Student loans can be liened, levyed or garnished without an judgment,but a state medical debt is that fuzzy grey area. It may depend on the state.

My advice: pay it with a credit card and if you can't pay it off, its much safer to default on a credit card than a debt to the state.

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