Am I responsible if they FAIL to bill Medicare in a timely manner?

Feb 28, 2010

Medical bill in collections
by: Gerri

Thanks for submitting your debt collection question on our Q&A page.

Unfortuntately, your story illustrates some common problems with our health care billing system and debt collection laws. It is not unusual for consumers to first hear about a medical bill from a collection agency. And the collection agency generally has the right to report a collection account to the credit reporting agencies, which damages consumer's credit reports.

You did the right thing by requesting written verification of the debt. Unfortunately, the statement you received was useless. The Federal Trade Commission (FTC) has identified problems with the verification procedures used by some debt collectors and, again, your story illustrates that problem.

While the collection agency states that billing insurance is a courtesy, I am not sure that is correct here. If the medical provider has an contractual arrangement with Medicare, they may be required to bill them according to that arrangement.

I would suggest your first step should be to you can contact a local consumer law attorney with expertise in debt collection to discuss whether the law firm has violated the FDCPA or state law in its collection of this medical debt. You can find a local consumer law attorney or call the Collection Complaint Hotline at 888-711-5143 for a free, confidential case evaluation. Many debt collection cases are taken on a contingent-fee basis, where you only pay if you win. That's because if you successfully sue under the FDCPA, you may be entitled to damages and attorney fees.

Let me know what happens when you talk with an attorney. If it turns out he/she doesn't think you have a good case, we'll discuss Plan B.

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Feb 28, 2010
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Submitted by: Gerri

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<a href=" http://www.debtcollectionanswers.com/http://www.debtcollectionanswers.com/Debt-Collection-Questions.html">Thanks for submitting your debt collection question on our Q&A page. </a> Unfortuntately, your story illustrates some common problems with our health care billing system and debt collection laws. It is not unusual for consumers to first hear about a medical bill from a collection agency. And the collection agency generally has the right to report a collection account to the credit reporting agencies, which damages consumer's credit reports. You did the right thing by requesting written verification of the debt. Unfortunately, the statement you received was useless. The Federal Trade Commission (FTC) has identified problems with the verification procedures used by some debt collectors and, again, your story illustrates that problem. While the collection agency states that billing insurance is a courtesy, I am not sure that is correct here. If the medical provider has an contractual arrangement with Medicare, they may be required to bill them according to that arrangement. I would suggest your first step should be to you can contact a local consumer law attorney with expertise in debt collection to discuss whether the law firm has violated the FDCPA or state law in its collection of this medical debt. You can find a local consumer law attorney or call the Collection Complaint Hotline at 888-711-5143 for a free, confidential case evaluation. Many debt collection cases are taken on a contingent-fee basis, where you only pay if you win. That's because if you successfully sue under the FDCPA, you may be entitled to damages and attorney fees. Let me know what happens when you talk with an attorney. If it turns out he/she doesn't think you have a good case, we'll discuss Plan B.

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Am I responsible if they FAIL to bill Medicare in a timely manner?

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Am I responsible if they FAIL to bill Medicare in a timely manner?