Question
Medicare, hospital bill, and collection agency help needed please!?
I went to the ER years ago. I believe (but honestly cant remember) that I gave my Medicare card to the hospital. I never received a bill from them. A year later, I got a bill from a collection agency. Not understanding the process, I sent a copy of the Medicare card to them twice in the envelope they provided. The bills stopped, I thought it was the end of the story. This year, I am trying to get a home loan. I was surprised to see this bill (along with another I had NEVER seen from around the same time) on my credit report. I disputed, informing the bureau that I had sent my insurance info in 2005. I also called the collection agency and reminded them of this fact, though never acknowledged responsibility for the debt or made arrangements to pay. The accounts are still on my record. Medicare verified that the hospital never submitted a claim and that they are over-billing since I am never supposed to be responsible for more than the Medicare approved amount. Wasn't the collection agency responsible for turning my insurance info over to the hospital? If they weren't, shouldn't they have contacted me to let me know this wasn't resolved in 2005? They "updated" my credit report, so I KNOW they received the info. Also, when I called, they wouldn't discuss the account I told them shouldn't be on my credit report. I was only told a "supervisor would have to call back". HELP! I don't understand why this wasn't taken care of in 2005 at the latest. Really, I don't think it should ever have gone to collections. What can I tell the Credit Bureau to help my case, since I was further "punished" by the collection agency as now the account has been extended another 7 years on my credit report. Again, I only told them I shouldn't have any open accounts on my credit report from them as they were sent insurance info four years ago. I NEVER agreed to pay, or said I should pay, anything. Thank you if you read this...I know it is lengthy. And I don't try to get out of my responsiblities. This hospital bill is the ONLY trouble I have on my credit report. They never even sent me or Medicare an itemized bill. Sorry, one more detail. Though I understand neither I nor the Collection agency can process an insurance claim, don't they have some responsibility to communicate to their client that they received the insurance info? Or at least have told me AT THE TIME that they wouldn't do that? I wanted to call the hospital, but the credit bureau told me to contact the collection agency since they now have the account.
6 months ago - 3 answers
Best Answer
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It is likely that the debt was sold to the collection agency. But even if the collector was working for the hospital, they have absolutely no responsibility to turn the insurance info to the hospital. At this point you could try to dispute the items with the credit bureaus. Maybe the collection agency own't verify the debt and it will be removed. That will take at least 45 days. If that doesn't get rid of the item, you should send the collection agency a letter offering a pay for delete settlement -- you pay $x and they remove the item from your file. Specifically say in the letter that you are not acknowledging the debt but making the offer to expedite removal of the item from your credit report. Ask that an authorized agent of the collection agency sign and return a copy of the letter indicating acceptance of your offer. When you get the signe copy, send them a money order. Do not give the collector direct access to your bank account. Since this debt is over 4 years old, start out offering 10%. They may make a counter offer but you should be able to settle the debt for less than 25%. Just make sure you get the settlement in writing. Don't mention the mortgage. They will insist on full payment plus interest and fees!
by bdancer222
6 months ago
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Other Answers
No, the collection agency is not responsible for processing insurance claims. Unfortunately, you should have dealt directly with the hospital's billing dept. at that time to insure that the claim was properly submitted.
by jlf- 6 months ago
It was your responsibility to give your insurance details to the hospital when you went in for treatment. It is not the debt collectors responsibility to report insurance information, most times the debt collector has bought the debt from the hospital and the hospital is totally out of the picture. No one can extend the reporting time period on the debt. By law a negative item can be reported on your credit report for 7 years from date of first delinquency, they can not change the date to extend the reporting period. Did you admit the debt to the debt collector? If so you will need to check your states finance code to see what restarts the statute of limitation. Has the statute of limitations ran out on the debt? This is the time period in which legal action can be taken against you. Check here to see if your states statute of limitations has expired. www ... If the statute has expired send them this letter certified mail/return receipt. www ... The collection account will remain on your credit report for the remainder of the reporting time period.
by Dixie Darlin'- 6 months ago