Medical Debts: Medical bills fall under the
Fair Debt Collection Practices Act because medical debt meets the definition of
a "debt" under rule 803(5):
This rule defines "debt" as, "a consumer's obligation to pay
money arising out of a transaction in which the money, property, insurance, or
services are primarily for personal, family, or household purposes."
The rule goes on to state the term "debt" also includes
overdue obligations such as medical bills that were originally payable in full
within a certain time period (e.g., 30 days); dishonored checks that were
tendered in payment for goods or services acquired or used primarily for
personal, family, or household purposes; and student loans, because the
consumer is purchasing "services" (education) for personal use.
The term "debt" does not include unpaid taxes, fines,
alimony, or tort claims, because they are not debts incurred from a
"transaction (involving purchase of) property . . . or services . . . for
personal, family or household purposes."
Medical Insurance:
Two common mistakes: 1)
Thinking that your insurance company is responsible for paying your medical
bills and, 2) Thinking medical providers are required to bill your insurance
company.
The truth is, consumers are responsible for their own medical
debts. This means consumers must ensure their insurance company is billed in a
timely manner and billed correctly. It also means they must follow up in a
timely manner to ensure the medical bill gets paid.
As a convenience for you, most medical providers will offer to
bill your insurance company. Accepting their offer does not relieve you of the
responsibility of ensuring the medical bill gets paid. It's not uncommon for
medical providers to submit medical bills after an insurance company's deadline
for filing. In some cases, the provider may, for a number of odd reasons, not
submit the medical bill at all. Regardless of the reason, the bottom
line is that the consumer is still responsible for paying off the medical debt.
In some cases, your insurance company may reject the bill or
flat out refuse to pay. If this happens, the medical provider will expect you
to pay the bill and, unless you've disputed the debt, you are legally expected
to pay the bill in a timely manner. The fact that your insurance company did
not pay is not the medical provider's concern! You may have to argue with your
insurance company or go through dispute resolution but, the medical provider is
entitled to timely payment. You may have to pay the provider yourself and then
work with your insurance company to get reimbursed.
Always read the medical provider paperwork (contract
for services rendered) carefully!
Medical Bill Disputes:
Medical bills and
old medical debts that you consider invalid can be disputed just like any other
debt.
Disputing Medical Debts
Just like any debt, interest can be added to medical bills IF
the original contract or paperwork allows it AND your state law does not
prohibit it. Even if the original paperwork allows it, ALWAYS check your state
law to make sure you are not being overcharged. Some states limit the amount of
interest and the amount of collection fees.
Statute of Limitations on Medical Debts:
Medical
debts are generally considered closed-ended credit contracts with a definite
pay-off time limit. Unless you have a separate agreement, medical debts are
usually payable at the time services are rendered or, in some cases within 30
days. Check your State's Statute of Limitations (SoL)