@Maybeyou wrote:Should I contact the collection agency and try to negotiate a lower payment amount? I owe $250 from insurance er visit copys at $125 each.
Should I ignore the collection letter altogether as it can't damage my credit?
I assume they could opt to sue me, correct? I definitely don't want that.
Thanks
I think it's best to resolve these things.
"Should I contact the collection agency and try to negotiate a lower payment amount? I owe $250 from insurance er visit copys at $125 each."
If this is your out of pocket co-pay or deductible after insurance is applied they cannot lower the payment. Than can take lower payments to pay off the entire $250 balance but allowing you to pay less than what is owed contractually under your policy is illegal rebating. They also cannot apply charity care to insured patients for co-pays.
"Should I ignore the collection letter altogether as it can't damage my credit?" NEVER ignore collection letters that are within the SOL for lawsuit or collections.
"I assume they could opt to sue me, correct? I definitely don't want that." Yes, they can. I have been in health care for over 30 years and my gut tells me that with not being able to report medical debt a lot of providers are going to to to court to collect what is owed. They generally avoided lawsuits and relied on collection(s) accounts and credit reporting. I know quite a few of the providers I work with have been discussing this and they feel that their best option to ensure prompt and full payment on insured patients is either payment up front and providing the patient with the necessary paperwork to file a claim to be reimbursed or for those providers that continue to courtesy file claims they are re-working their financial agreements to disclose that failure to pay required out of pocket patient expenses could result in litigation after collection attempts.
There is something else to consider: creditors like AMEX, CHASE, utilities, cable and others blacklist consumers who owe them money. Well medical providers can do the same thing. While the ER is required under the EMTALA law to see anyone regardless of ability to pay and treat until stable, should you need to return to that facility for lab work, xrays, or any other routine care they can deny you access until you clear up the balance you owe. They can also include interest if the financial agreement spelled it out. Quite a few doctors/clinics now have an open statement that says if you have a past due balance and have not paid it or made arrangements the will not provide further care until it is taken care of. Let it get too out of control and they will discharge you from care leaving you to find another provider if you can. Yes, this is legal. To discharge a patient from care all that is required in all 50 states is a letter notifying the patient CMRR and a 30 day supply of medication(s) prescribed by that physician. New providers can refuse to accept a patient for elective care. Only an ER cannot refuse to evaluate and stabilize someone regardless of financial circumstances. While consumers may not care if credit card companies/banks think they are a deadbeat because they didn't pay what they owed is it worth it to compromise your access to health care by walking away from what you contractually owe under insurance?
