Negotiating Medical Debt (continued)
Option 4: Challenge the validity of the debt
You've probably heard stories in the media about outrageous medical bills, such as hospitals double billing for services or charging for services never provided. Studies have shown that over 80 percent of hospital bills have one of these types of errors. If you take the time to learn how to read and scrutinize hospital and medical bills, you might save yourself some money. You can learn how to read hospital bills and locate billing errors and overcharges at websites such as The Health Pages at http://www.thehealthpages.com.
If you locate an error, you need to notify the hospital or health care provider's billing department immediately. Although a phone call will do, it doesn't protect your legal rights, as the creditor might claim you never called in the first place. A certified letter, sent return receipt requested, would be a good idea. You also need to notify your insurer of the mistake, if you have one.
Also, keep in mind that many hospitals charge the uninsured up to four times more for services than they do the insured. If uninsured, do some investigating to find out if you were overcharged. If so, demand that you be charged the same rate as the insured. If they refuse to do so, complain to state and federal regulators, such as your state's Attorney General's office and state agencies that regulate hospitals.
If you are unable to resolve the billing dispute with the hospital, send a formal, written complaint along with a copy of the bill or bills to the Office of Consumer Affairs Division of your state's Attorney General's Office.
Option 5: Assert an Affirmative Claim
If the creditor or debt collector has used particularly aggressive or unconscionable practices to try and collect the debt from you or coerced you into signing a payment agreement, you might be able to sue on the grounds that the creditor / collector violated federal or state laws, such as:
(a) The Fair Debt Collection Practices Act (FDCPA). This federal legislation sets forth what collection methods a collector can use against a debtor. Note that the FDCPA applies only to debt collection agencies and not the original creditors. Original creditors are regulated by state law.
(b) State Unfair or Deceptive Acts or Practices Statutes (UDAP). All 50 states and the District of Columbia has UDAP statutes that punish collectors for abusive and illegal collection practices. You might be able to sue under your state's statutes for abusive and illegal collection practices.
(c) Common law (tort) remedies. If a creditor or collector has acted unconscionable (outrageously) in trying to collect a medical debt, one might be able to sue on the basis of (a) unconscionability; (b) invasion of privacy; (c) intentional infliction of emotional distress; or (d) limitations on collection fees.
If you believe that you might have grounds to sue a creditor or debt collector, consult an attorney to find out if you have a case. If you suspect that a creditor or debt collector is abusing you in an illegal manner, take meticulous notes of your dealings with him or her, including getting a name, phone number, and, if you can, record all phone conversations. Keep a copy of all correspondence you send and receive as well. More information in "Handling Debt Collectors" section.
Option 6: Arrange a repayment plan through a credit counseling service
Many medical-related creditors will give concessions through credit counseling services. However, you are cautioned not to sign up with a credit counseling services or pay them any money until you get it in writing that they can effectively negotiate with the medical creditor for an alternate repayment plan. There are numerous bogus credit counseling services operating today. These services promise you the moon, but deliver nothing after they con you into sending in an enrollment fee. The best way to avoid them is to ask the hospital, clinic, doctor, etc., if they deal with credit counseling services. If they say yes, ask them which service they use.
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