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Arbitration and medical debts


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Any debt CAN be sent to arbitration. But whether or not the other party will agree to it is a different animal.


The reason that arb is used, at times, against the OCs and JDBs that hold credit card debt is that it's written into a credit agreement. I am not aware of any medical services contracts that include that type of language, but that doesn't mean that there are none.


Look at your papers from your care and see what they say.


OTOH, I have always found that simply finding a bill from the provider, copying it and sending it, with a payment, is a good way to work around a CA.


I had a medical bill where the billing office wouldn't talk to me, because they'd sent the bill to collections. I used the above method, and the CA went away.

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Has anyone come across a medical debt that could be sent to arbitration? I ask because I'm trying to take stock of all my options.  I'm trying get a medical debt away from the clutches of a collection company. 


I have not.  One reason is insurance.  If you used insurance to cover the charges and the bill is for your portion there is no negotiating on the issue.  It is illegal for the provider to discount your portion.  You are contractually obligated to pay the amount owed and if they discount it it is called illegal rebating.  Insurance carriers can and have sued providers who provide discounts to the patients on their portion.


Have you tried contacting the provider and trying to pay them?  If they have referred you to the CA it is because they are on a contingency contract with them and the CA does not get paid unless they collect.  The contract specifically states that any payment that is made to the provider is turned over to the CA.  The reason is they CA does all the work to collect and if the provider is paid the CA is not.  You cannot force the provider to violate a contract like that even with arbitration.


If it is not a contingency contract you can simply pay the provider and then dispute the trade line of the CA as "paid to original creditor" and it should come off that way.

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