nic

collection agency closed, letter returned

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I was treated in the emergency room without insurance but received HCAP, basically charity forgiveness. when youre broke but not broke enough for medicaid. It took the hospital over 90 days to approve the "coverage" so the attending physician services billed me. I made them aware I was applying for the HCAP and waiting for approval. the day i received my HCAP approval I got my first collection agency letter. of course they refused to even listen to what I was saying and the physicians group wouldnt even review the HCAP letter despite the hospital showing a zero balance. I understand individual drs can bill separately, they just never even attempted to receive payment under the HCAP before collections. I sent  a letter to the agency listed as having the account for debt validation and the letter was returned as attempted-not known- unable to forward. Yelp shows the business as closed and this is the only agency showing ownership of the account on my CR. Any suggestions on what to do next? Not familiar with medical debt, any help is greatly appreciated :)

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Guest usctrojanalum

I'm pretty sure HCAP is just a straight charity write-off.  The hospital did not receive a payment from anywhere.  Not for Profit Hospitals offer this under the Federal Hill-Burton Act because they get tax incentives.  Since individual physicians groups do not operate as a not for profit, and do not receive the favorable tax treatment a hospital provider does, they are not bound by the Hill Burton Act to offer charity care or low costs medical services. 

Since the agency is closed - you should be able to dispute the bills to have them removed since there can be no way for collection agency to verify. 

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2 hours ago, fisthardcheese said:

If they are not reporting anything on your credit reports, then I would consider it taken care of unless and until I hear something else.

The OC said that they are reporting on his credit report.

I would send a demand to the reporting agency to remove the debt as not valid. If they come back as verified, send in a request to show method of validation. If you can prove that the agency is closed and there is no way to contact them, the method of validation will be interesting to see. FistHardCheese can help you with that.

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I know the individual physicians can and do bill separately,  I guess I was just trying make it clear that they sent it into the collections before the HCAP even was processed and i could see the final bill to even attempt to make a billing arrangement on any balances and what not. It has been reported as negative information on my CR, and I have the returned letter unopened, that I sent requesting validation of the debt. I also located 2 phone numbers online and theyre not active and yelp lists them as closed.  I guess my next step is to just dispute it with the bureau(s)? The agency cant validate a debt if theyre closed..... thanks or the responses everyone.

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