So you’ve had a medical bill sent to collections. Now what? The first thing is: don’t panic. Things can be resolved if we go about them the right way.
Just because a medical bill has been sent to collections doesn’t mean that you don’t have opportunities for debt relief or that there will be a negative hit to your credit score. Getting a medical bill sent to collections is not the end of the world!
But let’s not get ahead of ourselves. Let’s start at the beginning.
Your Medical Debt Can Be Sent to Collections at Any Time–Even If You’re Making Payments!
Yes, even if you’re on a payment plan with the health care provider, hospital, or clinic, your debt can still be sent to collections.
According to the Affordable Care Act (ACA), patients of nonprofit hospitals are supposed to be given time to apply for financial assistance before “extraordinary collection measures” (collection agencies) are taken, but the truth is that any outstanding balance you owe to a medical provider can be sent to collections at any time.
What To Do If You’re In Negotiations to Make a Medical Debt Settlement
If you’re working with your medical provider because you’re appealing a denial from your health insurance, then you need to write a letter to your provider explaining the situation and ask them to put your account on hold. In most cases (but not all) the hospital or clinic will put your bill on hold for between 30 to 90 days.
During this time you can appeal to your health insurance, and make use of medical billing advocates.
For example, the Patient Advocate Foundation (patientadvocate.org) offers free medical billing support services. If your bill is completely out of your control, something you cannot pay, then there are often opportunities for debt relief in the form of financial assistance. Make sure that you exhaust every avenue that you have available to you.
What To Do If It Goes to Collections
If your medical bill goes to a debt collector anyway, don’t panic.
The first thing you need to ascertain is whether you have a signed agreement for the bill to be paid in full. This will have been an agreement that you signed at the hospital or clinic.
And be wary–often, these documents are signed while you’re in duress, sometimes even while you’re lying in the hospital bed. If you have been duped into signing one of these documents, don’t worry, there’s still hope. We’ll get to that in a moment.
If you haven’t signed a financial agreement, then it will be difficult for the collection agency to pursue you for the debt. Collection agencies cannot enforce the collection of debt if they can’t validate the debt, and that means they need to have a signed financial agreement from you stating that you’re willing to pay.
So if you haven’t signed one of these agreements, then you have more room to maneuver. In this case, you don’t even need to deal with the debt collectors–you go back to dealing with the hospital or clinic. It should never go to credit reporting and hurt your credit score.
What To Do If You Have a Signed Agreement
If you do have a signed agreement, then the collection agency can indeed pursue you for the debt. In this case, you can either make an agreement with the collection agency to make small payments you can afford, or you can instead go to an attorney. There are attorneys who specialize in this very thing and work hard to help families dealing with medical debt every single day. If you’re suffering from a medical debt you cannot pay, and it’s in collections, consult an attorney or your nearest Legal Aid Society.
**Note: please consult an attorney for any legal advice.