Question re:Interest Charges/Collections

[whatshouldIdo]

My husband recently received a letter from a CA regarding some past due charges on a hospital bill. To the best of my knowledge, here's what happened.

 

Our son had some services that were appealed by the hospital clinic to our insurance company and denied--this was back in early 2008 (as I recall off the top of my head) and it took a while to hear back from our insurance company. We had two bills to pay. Some interest charges were tacked onto the first bill I'm sure while we were awaiting to hear the results of the appeal. On the first bill, we paid just the charges for the actual services according to our EOB, not any interest charges.

 

We then went onto pay the charges on the second bill--again for services according to our EOB.

 

What we think happened is that when we paid the second bill, the hospital applied a portion of our payment toward the interest charges that had occurred on the first bill, thereby leaving a balance on the second bill, which is why we think we received the notice from the collection agency.

 

My questions are--the notice is for a little over $20. Do we go ahead and pay this small amount and be done with it?? Is it already on my husband's credit report?? How will it affect my husband's credit report, if at all?

 

Thanks for your help.

[Why Chat]

My husband recently received a letter from a CA regarding some past due charges on a hospital bill. To the best of my knowledge, here's what happened.

 

Our son had some services that were appealed by the hospital clinic to our insurance company and denied--this was back in early 2008 (as I recall off the top of my head) and it took a while to hear back from our insurance company. We had two bills to pay. Some interest charges were tacked onto the first bill I'm sure while we were awaiting to hear the results of the appeal. On the first bill, we paid just the charges for the actual services according to our EOB, not any interest charges.

 

We then went onto pay the charges on the second bill--again for services according to our EOB.

 

What we think happened is that when we paid the second bill, the hospital applied a portion of our payment toward the interest charges that had occurred on the first bill, thereby leaving a balance on the second bill, which is why we think we received the notice from the collection agency.

 

My questions are--the notice is for a little over $20. Do we go ahead and pay this small amount and be done with it?? Is it already on my husband's credit report?? How will it affect my husband's credit report, if at all?

 

Thanks for your help.

Interest charges are not allowed to accrue on medical accounts unless you have signed a contract agreeing to them.

 

Opt out

http://whychat.5u.com/OPTOUTINST.HTML

Since this is a recent situation, you do not need to delete addresses.

 

Send each CRA where the account is reporting this; ( follow ALL the directions, even if they seem strange)

http://whychat.5u.com/hipaadisp.html

 

Send the collection agency this;

http://whychat.5u.com/ltrcavalhipaa.html

 

You need to do all this stuff to prevent a $20. bill from creating a cascade effect on your credit reports.( even though the postage and trouble is almost as much as the amount of the claim) There are many folks posting in this forum who have paid a CA a small amount of $$ and found themselves with a PAID COLLECTION on their reports, which is just as bad as an unpaid one, and much more difficult to remove. They then have had their credit scores drop and had this small amount of $$ effect their other credit with increased rates and lowering of their credit limits.

[whatshouldIdo]

We received from the CA today all the documents we requested--a copy of the HIPAA privacy practices signed, the document showing where it had been assigned to the local CA to collect payment, and the consent to treat signed by us which states that interest is payable. on balances over 30 days. When we pulled our credit report last week, nothing was shown as going to collections. Do we just go ahead and pay the CA the small $20+ amount and be done with it?

[Why Chat]

We received from the CA today all the documents we requested--a copy of the HIPAA privacy practices signed, the document showing where it had been assigned to the local CA to collect payment, and the consent to treat signed by us which states that interest is payable. on balances over 30 days. When we pulled our credit report last week, nothing was shown as going to collections. Do we just go ahead and pay the CA the small $20+ amount and be done with it?

You can do that if you wish, however the notation on your husband's credit report MAY be a "paid" collection.

 

Because the CA furnished you with the data you requested and is OBVIOUSLY a business partner of the OC and subject to the HIPAA rules, I am going to suggest that you pay the CA and include this letter;

 

Dear Sir/Madam;

This letter is in reference to (account #) for services provided to (name of patient) on (date of service).

 

In regard to the bill on this account in the amount of ($___):

Enclosed is payment in full

 

Please be advised that under Federal Statutes. the Fair Credit Reporting Act, (15 U.S.C. § 1681 et seq)and (name of your State)'s Consumer Credit Statutes,and subtitle D of the ARRA ,SEC. 13401.

 

Your reporting of this account to any Credit Reporting Agency, or verification of the account status is now no longer permitted ,nor any subsequent reporting of this account on my credit reports to any credit reporting agencies as it would be a clear violation of Public Law 104-191 ("HIPAA") since there can be no permissible business purpose in divulging protected health information to anyone on an account once there is no longer any payment due.

 

You are required under the FCRA and FACTA to accurately report the status of any account to the credit bureaus, and you are prohibited under the HIPAA and State privacy regulations from doing so on a PAID account, as there is no longer any permitted business purpose.

This includes changing or verifying any change in status to a "paid" account.

 

Therefore I am requesting you promptly rescind all such account information furnished to any credit reporting agency, and that you insure that any and all reporting of this account is immediately deleted from my credit reports.

 

Please respond, in writing within 10 days that you are processing this request.

 

I am reserving the right, to take appropriate legal and civil action including reporting to any applicable regulatory authorities any lack of cooperation or compliance with this request.

 

Sincerely,

[whatshouldIdo]

Am getting ready to send the letter and a money order (payable to both the CA and the hospital/OC). After re-reading through the patient charges provided by the hospital to the collection agency, I notice that the hospital provided the collection agency with the type of treatment my son received. Is the collection agency actually entitled to this information?

[bonbonXO]

I notice that the hospital provided the collection agency with the type of treatment my son received. Is the collection agency actually entitled to this information?

Yes, when the OC and CA are business associate the CA is entitled to your PHI (protected health information) until your account is PIF ( paid in full)

[whatshouldIdo]

Thank you--paid the balance and received letter from the CA stating they had not reported it to any CRA and would not report it to any CRA.