How long can this go on my credit report (if they report it) ?

[soliloquy]

I posted something about this before but my question was different. Now I just want to know how long this would be on my credit report if I chose not to pay it.

I'm not asking for legal advice but I want to know how I should handle these medical providers.

A health insurance company has completed some type of internal audit and determined that my son was not eligible for benefits during a period of YEARS even though they gave authorizations, paid claims and continued to showed him eligible for services. This sudden revelation occurred for them in March 2011. They have reversed and recouped money from every providor my son has seen while under that insurance plan going all the way back to 2004.

The total monies they recouped was extensive but I have dealt with every provider (there were a dozen and a half of them) except one.

This is how it all went down. When the insurance requested a recoupment from the medical providers, the insurance gave the medical providers 30 days to reimburse the money before they began offsetting other patient's claims. Meaning, if they have other clients with that same insurance, they will keep the money they would have otherwise paid for those patients and apply it to the debt they owe for my son's claims.

My credit has NO negative hits on it right now. Currently, I am looking at a total debt of around $24,000.00 but the dates of service subject to the recoupment range from December 2004 through April 2011. 

My question is, if this particular medical provider was paid on time by the insurance company and then the insurance company came back later and wanted a recoupment for each date of service could they put that amount on my credit report and for how long? For instance, say one date of service was in March 1, 2006 and the insurance paid it on March 27, 2006 and then insurance came back and recouped the payment in April 1, 2011 - if they sent that to the credit bureau...would it stay on my report 7 years from 2006 or 7 years from 2011?

Thanks?

I am thinking that they could not list a "lump sum" debt since each date of service is different.

 Additionally, if the providers are willing to make a payment plan it will likely take me as long to pay it off as it will to fall off my credit report. I want to be a good steward but is there a reason I should pay it if it's going to fall off in 7 years? 

If they choose to sue me first, I believe I'd be protected for any debts older than 3 years because of the statute of limitations. I've already agreed to pay them any debts that are within the statute of limitations. If they sue me and FAIL to obtain a judgment, does that bar them from putting it on my credit report at that point?

Thanks!

[bruiseviolet]

You need to do a google search for "WHYChat HIPPA" and dispute the medical collections that way.  Searching for that term will take you to where you can see others with the SAME medical problem you're currently going through and how to proceed.  

[Booner72]

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@soliloquy wrote:

I posted something about this before but my question was different. Now I just want to know how long this would be on my credit report if I chose not to pay it.

I'm not asking for legal advice but I want to know how I should handle these medical providers.

A health insurance company has completed some type of internal audit and determined that my son was not eligible for benefits during a period of YEARS even though they gave authorizations, paid claims and continued to showed him eligible for services. This sudden revelation occurred for them in March 2011. They have reversed and recouped money from every providor my son has seen while under that insurance plan going all the way back to 2004.

The total monies they recouped was extensive but I have dealt with every provider (there were a dozen and a half of them) except one.

This is how it all went down. When the insurance requested a recoupment from the medical providers, the insurance gave the medical providers 30 days to reimburse the money before they began offsetting other patient's claims. Meaning, if they have other clients with that same insurance, they will keep the money they would have otherwise paid for those patients and apply it to the debt they owe for my son's claims.

My credit has NO negative hits on it right now. Currently, I am looking at a total debt of around $24,000.00 but the dates of service subject to the recoupment range from December 2004 through April 2011. 

My question is, if this particular medical provider was paid on time by the insurance company and then the insurance company came back later and wanted a recoupment for each date of service could they put that amount on my credit report and for how long? For instance, say one date of service was in March 1, 2006 and the insurance paid it on March 27, 2006 and then insurance came back and recouped the payment in April 1, 2011 - if they sent that to the credit bureau...would it stay on my report 7 years from 2006 or 7 years from 2011?

Thanks?

I am thinking that they could not list a "lump sum" debt since each date of service is different.

 Additionally, if the providers are willing to make a payment plan it will likely take me as long to pay it off as it will to fall off my credit report. I want to be a good steward but is there a reason I should pay it if it's going to fall off in 7 years? 

If they choose to sue me first, I believe I'd be protected for any debts older than 3 years because of the statute of limitations. I've already agreed to pay them any debts that are within the statute of limitations. If they sue me and FAIL to obtain a judgment, does that bar them from putting it on my credit report at that point?

Thanks!

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Wow - this is quite a story and I'm sorry to hear this.  It sounds like a nightmare.  Regarding if they can report it as this year or when the date of service happened - I do believe they put the date of service as that would be the "date delinquent".    I'm not sure anyone could answer this question because this sounds like a pretty rare occurance.  I suppose the reason to pay would be if you paid and they agreed not to report (kinda like a pre-PFD or something).

HIPAA won't help you at all because you are contemplating only paying the debts within SOL - to get HIPAA to work you have to pay the OC. 

Good Luck!

[tbolt2]

Have you contacted with your state's Department of Insurance to see if it is even legal for them to recoup this money after such a long period of time? I vaguely recall that at least one state has a statute that, under certain conditions, prohibits an insurance company from doing something like this - if it has been more than one year since the claim payment. There are probably a number of exceptionsand loopholes, but I do not recall what they might be. Sorry I can't be more helpful, but without knowing what state, I'm at loss to provide more definite information. I would have to llok sa the specific state's insurance regulations and statutes to give definite info. Your state may not have a statute like this or it may not apply to your specific situation, but it may be worth looking into.

Another option to consider - file a formal complaint against the insurance company with the Department of Insurance in your state. Provide as much information to the Department as you can. The insurance company will have to respond to the DOI within a short period of time, which varies by state.

[bruiseviolet]

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@Booner72 wrote:

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@soliloquy wrote:

I posted something about this before but my question was different. Now I just want to know how long this would be on my credit report if I chose not to pay it.

I'm not asking for legal advice but I want to know how I should handle these medical providers.

A health insurance company has completed some type of internal audit and determined that my son was not eligible for benefits during a period of YEARS even though they gave authorizations, paid claims and continued to showed him eligible for services. This sudden revelation occurred for them in March 2011. They have reversed and recouped money from every providor my son has seen while under that insurance plan going all the way back to 2004.

The total monies they recouped was extensive but I have dealt with every provider (there were a dozen and a half of them) except one.

This is how it all went down. When the insurance requested a recoupment from the medical providers, the insurance gave the medical providers 30 days to reimburse the money before they began offsetting other patient's claims. Meaning, if they have other clients with that same insurance, they will keep the money they would have otherwise paid for those patients and apply it to the debt they owe for my son's claims.

My credit has NO negative hits on it right now. Currently, I am looking at a total debt of around $24,000.00 but the dates of service subject to the recoupment range from December 2004 through April 2011. 

My question is, if this particular medical provider was paid on time by the insurance company and then the insurance company came back later and wanted a recoupment for each date of service could they put that amount on my credit report and for how long? For instance, say one date of service was in March 1, 2006 and the insurance paid it on March 27, 2006 and then insurance came back and recouped the payment in April 1, 2011 - if they sent that to the credit bureau...would it stay on my report 7 years from 2006 or 7 years from 2011?

Thanks?

I am thinking that they could not list a "lump sum" debt since each date of service is different.

 Additionally, if the providers are willing to make a payment plan it will likely take me as long to pay it off as it will to fall off my credit report. I want to be a good steward but is there a reason I should pay it if it's going to fall off in 7 years? 

If they choose to sue me first, I believe I'd be protected for any debts older than 3 years because of the statute of limitations. I've already agreed to pay them any debts that are within the statute of limitations. If they sue me and FAIL to obtain a judgment, does that bar them from putting it on my credit report at that point?

Thanks!

---

Wow - this is quite a story and I'm sorry to hear this.  It sounds like a nightmare.  Regarding if they can report it as this year or when the date of service happened - I do believe they put the date of service as that would be the "date delinquent".    I'm not sure anyone could answer this question because this sounds like a pretty rare occurance.  I suppose the reason to pay would be if you paid and they agreed not to report (kinda like a pre-PFD or something).

HIPAA won't help you at all because you are contemplating only paying the debts within SOL - to get HIPAA to work you have to pay the OC. 

Good Luck!

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HIPAA will work- it's valid for debts within the SOL- even if they are with the OC and not a CA..  It's actually easier to get them removed when they are still with the OC- one less step for the HIPPA process =)

You might even get lucky and they just go "bye-bye".  8 of my 11 medical tradelines did just from sending the pre-hipaa letter =)

Like I said previously...  google search WHYCHAT HIPAA-  and also find the forum/board he is on and ask this there- he will directly repsond to your question.  So many others have similar situations-  

[Middleswarth]

Wow.  That's just not right.  How can they charge you if they have been authorizing and paying for many years.  Unless there is fraud involved, I can't imagine a scenario where this is right.

Have you contacted your local TV news?  Insurance companies LOVE to make the evening news.