Hospital biling department's mistake submiting claim to my insurance cost me collection on my credit report
After checking my credit report I found collection for medical bills (service was done 2007). I have insurance and it pays 100%. Hospital never send me a bill and I never got collection letter. They both had my old address, I did not live there since 2003 (I found out that after calling to collection agency).
I have no idea how they could get my old address mistaken, because all other bills for the same hospital's visit was paid by my insurance and it had new address (if I can say that since I live here since 2003) I feel that unfairly, because of hospitals billing department clerical mistake my credit is being ruined. And collectors failed to notify me by my current address.
In case of this importance, shouldn't mail be returned back to collections agents if it can not reach me? Does hospital have right to sell me to collection agency even then their claim staff is at fault? I appreciate all ideas about what can I do in this situation.
Will the record still stay on my credit report after my INSURANCE (I do not have any co-pay) pays the bill?