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Medical Bill in Collections


clancaster23
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I had a procedure done about three years ago and received two bills totaling just over $1,200.  Never paid anything on them and now they are in collections.  I'm in the process of cleaning up my credit in anticipation of buying a house in 3-4 years.  These two bills are the only items in have in collections.  I have contacted the agency about a year ago that holds the debt and they would not negotiate a payoff amount.  I am concerned about how long I'll have to wait to get it off my report if I paid it off now but just read something that said if its a medical bill, it is taken off your report as soon as it's paid.  Is that true?  If it is, I'll pay it now and have it done with.  If not, should I pay it now or just let it go till it disappears?

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4 minutes ago, clancaster23 said:

I have contacted the agency about a year ago that holds the debt and they would not negotiate a payoff amount.

Did you use insurance to cover the procedure and this is your out of pocket amount?  If so, then they cannot discount the amount owed any more as it is a violation of the contract with the insurer in the form of illegal rebating.  It is also possible that the facility/provider already gave a discount and that is why they won't take any more off.  The last reason is some collection agencies take the accounts on contingency and only get paid on what they collect and therefore refuse to discount the amount owed.

6 minutes ago, clancaster23 said:

I am concerned about how long I'll have to wait to get it off my report if I paid it off now but just read something that said if its a medical bill, it is taken off your report as soon as it's paid.  Is that true? 

No, it isn't true.  It being medical debt does not mean they are required to delete the trade line once you pay.  The are only required to update it as paid.  You would need to negotiate pay for delete up front before you pay.   Is there any chance of contacting the provider and having the debt recalled and paying them?

8 minutes ago, clancaster23 said:

If not, should I pay it now or just let it go till it disappears?

Medical debt will automatically fall off 7 years from the date of the procedure.  Unlike credit card debt 6 months is not added on for charge off.  Whether paying it now or waiting is worthwhile is only a decision you can make.

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5 hours ago, clancaster23 said:

Yes, that was my out of pocket amount after insurance.

When you say contact the provider, do you mean the collection agency or the doctor's office?  If it's the doctor's office, say I was able to pay them, would that get it removed from my report?

That depends. 
 

Some doctors’ offices won’t talk to you once an account has been sent to collections. 
 

Others will. 
 

If you really want to negotiate with the doctors’ office, you can call and ask for their accounts department.  If they tell you to talk to the CA, then call the CA. 

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12 hours ago, clancaster23 said:

Yes, that was my out of pocket amount after insurance.

Okay, that means they cannot discount the amount owed.

12 hours ago, clancaster23 said:

When you say contact the provider, do you mean the collection agency or the doctor's office? 

The provider would be who ever is billing you and provided the care.  Many collections contracts are contingency or now written that once it is passed to the CA that the provider cannot recall or take payment.  Do not be surprised if they tell you they cannot do this.  If they can make arrangements to pay them.  If they cannot then you do PFD discussions with the CA getting all terms in writing BEFORE you pay.

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  • 1 month later...
2 hours ago, Micheo said:

sorry for disturbing, wasn't the operation covered by your insurance?

It was.  This is their out of pocket portion for deductibles and co-insurance.  Unfortunately having insurance does not automatically mean that the patient will pay nothing out of pocket on a claim.

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