topic Re: Medical Debt in Recovering from Medical Debt

Medical Debt

Anonymous — Wed, 25 Mar 2009 20:11:15 GMT

Well, I was just recently turned down for a home loan because of past medical debt. I have been reading the information on the HIPPA process and don't understand what I should do. What is a CR, CRA, etc.? I have copies and invoices from the most recent medical bills - should I send them a letter? I know that they are mine, but I just don't have the money to pay them. Any suggestions and help, please!! I am just crushed that I have a bad credit score because of these.

Thank you..

Re: Medical Debt

fused — Wed, 25 Mar 2009 20:21:57 GMT

Welcome to the forums!

CR = credit report

CRA = credit reporting agency (Equifax, Experian and Transunion)

Common Abbreviations

The HIPAA letter process requires that you PIF (pay in full) your medical debt. Unfortunately, if you are unable to pay, the HIPAA letter process will not work. How much do you owe? When were the dates of treatment?

Re: Medical Debt

Anonymous — Wed, 25 Mar 2009 20:25:57 GMT

I have medical debt from surgery back in 2007 (about $200), debt from a dentist ($130) and I owe the hospital about $1,100 from an unexpected MRI that resulted from the dentist visit (had to have a tooth pulled and had a serious infection that they needed to see in the MRI). I probably owe about $2,000 in medical debt totaled from 2005 to 2008.

Re: Medical Debt

Anonymous — Wed, 25 Mar 2009 20:27:09 GMT

I did read the HIPPA posted and did one of the options (opt-out) electronically (I believe step #1) haven't done the second opt-out option yet...wasn't sure about it.

Re: Medical Debt

fused — Wed, 25 Mar 2009 20:36:58 GMT

How much have you saved for your down payment? Can you take $2000 from it and pay off your med debt?

Re: Medical Debt

Anonymous — Wed, 25 Mar 2009 20:51:43 GMT

I was getting a grant for the down payment. I guess what I need to do is just buckle down and make payments to the original debtor or deal with the collection agency?

Re: Medical Debt

fused — Wed, 25 Mar 2009 20:55:53 GMT

Doing this will not help your scores. Has the CA (collection agency) been bothering you.

Re: Medical Debt

Anonymous — Wed, 25 Mar 2009 21:00:56 GMT

They have been calling my cell phone now and I have just gotten to where I don't answer it if I don't know the number. I am just so dissapointed right now and just not sure where to start. I need some good advice, please...

Re: Medical Debt

fused — Wed, 25 Mar 2009 21:09:18 GMT

Without having money to pay the debts, there's not much you can do. I don't want you to use the HIPAA letter process since you cannot pay your med debt in full. Some of the letters in the HIPAA process irritate OCs nd CRAs, so you run the risk of being sued. If you were to get sued, its nearly impossible to remove a medical judgment from your reports. Why? Public records are exempt from HIPAA and the Privacy Acts.

Re: Medical Debt

Anonymous — Wed, 25 Mar 2009 21:15:01 GMT

So, what is your suggestion? Do i just deal with the collection agencies and just pay them as I can?

Re: Medical Debt

fused — Wed, 25 Mar 2009 21:23:02 GMT

If the original creditor is willing to work with you, I would pay them. You really want to avoid paying the CA if you can. How much can you afford to pay on a monthly basis?

Re: Medical Debt

Anonymous — Wed, 25 Mar 2009 21:36:38 GMT

I would say probably about 100 a month. Should I send a validation letter to the CA's?

Re: Medical Debt

fused — Wed, 25 Mar 2009 21:43:58 GMT

angelfire_33 wrote:
I would say probably about 100 a month. Should I send a validation letter to the CA's?

Call the original creditor and see if $100 a month is doable. No way! Its too danegrous.

Re: Medical Debt

Anonymous — Wed, 25 Mar 2009 21:52:23 GMT

I guess I just worry about sending a CA money and it not going to the right person that I owe. I can't afford to send each one a $100 a month...just tackle them one at a time?