Millions of Americans struggle with medical debt. In fact, studies show that between 2005 and 2013, medical debts were the single largest contributor to personal bankruptcy filings in the U.S.
The Consumer Financial Protection Bureau (CFPB) said that half of all overdue debt on credit reports is medical debt; one in five credit reports contain overdue medical debt; and 15 million consumers have only medical debt on their credit reports.
Unfortunately, many Americans do not fully understand their rights and protections when it comes to medical debt. Understanding medical debt collection laws can help you better manage your medical debt.
What to do if your bill contains an error.
Medical debt collection laws vary by state, but in most states healthcare providers and debt collection agencies are allowed to contact you regarding a debt that you owe. However, you are allowed to challenge that debt if you believe it is incorrect. You can also tell the debt collector to stop contacting you. According to Exhale Healthcare Advocates, more than 50 percent of all medical bills contain errors, so it is important to contest your medical bills if you believe there is an error.
In order to challenge your medical bill, you must first ask for an itemization of the bill and request an internal audit. There are websites you can visit that will show you what fair prices for medical services should be, based on your location and zip code, such as www.healthcarebluebook.com. If you feel that your bill contains an error or you have been overcharged for a medical service, you should contact an attorney.
What to do if your insurance company denied your claim.
If your health insurance company has denied your medical claim, you can appeal the company’s denial. Before you do so, it is important that you know and understand the guidelines, including all of the fine print within your insurance policy. Most patients can get the claim denial overturned after one appeal; however, this can be a long drawn out process.
What to do if you are being harassed by a debt collection agency.
It is imperative that you understand your rights under the Fair Debt Collection Practices Act (FDCPA), since medical debts are considered consumer debts. This means all protections of the FDCPA apply to third party debt collectors if your debt is in default. If you feel that your rights have been violated under the FDCPA, you should contact the CFPB and file a complaint.
How to pay down legitimate medical debt.
- Do not pay your medical bills before you know how much your insurance company is going to cover.
- Never pay more than you owe based on your insurance coverage. For example, if your healthcare provider tries to charge your insurance company $300 for a Band-Aid, and your insurance company only pays $5. The hospital can come after you personally for the rest. This practice is called “balance billing” and is on the rise. Many Floridians are at risk for balance billing and are often unaware of the financial consequences. Individuals who run the greatest risk are those who have health policies from a private company that is not an HMO. Most are PPOs, preferred provider organizations. Those in an HMO would see all their bills covered: ambulance, hospital and doctors. But those who have another type of health insurance could be faced with astronomical medical bills after a trip to the ER or hospital.
- If you receive medical bills that you legitimately owe, contact your healthcare provider to work out a monthly payment plan that works with your financial situation.
Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
Related Resources:
http://health.wusf.usf.edu/post/bruising-battle-over-balance-billing#stream/0
http://blog.credit.com/2016/02/help-im-in-serious-debt-with-medical-bills-137177/