I'm a 100 percent disabled veteran seeking a VA Mortgage though Navy Federal . My wife just received a surprise medical billing collection on all 3 credit reports. We both know that the ER service was paid in full by ChampVA Health insurance by the us government. I found out that despite ER medical services being paid in full by my insurance the doctors are billing separately two times with the collection being reported two times on her report. This billing is over year old and very questionable aka, surprise billing. My wife's score dropped 60 points to 657 on Experian, 674 on Equifax and 676 on Transunion. My wife has no missed payments or previous collections in the past. my scores are Experian 745, Eauifax 750, TransUnion, 745 . No collections, no past due payments ever. our debt ratio is 21 %
The Navy Federal Mortgage loan officer said we still qualify for a VA Mortgage even with my wife's score drop, but conventional might require an addition down payment. Loan officer said VA would be the better deal for us anyway. Also said Navy Federal would like the medical collection paid before applying. In addition stating that my wife should dispute the collections with verification and request removal with all 3 Credit Reporting Agencies . The loan officer brought to my attention the new state law (New Mexico Surprise Billing Act SB337 Effective Jan 01-2020 ) from section 14 of the Act below.. ( see last paragraph) Unlawful to use a collection agency to collect on surprise billing effective 01-01 2020 .
The collection was entered on the all 3 of her credit reports January 1, 2020 , the same day the Law took effect. The way the law is written it is unlawful to submit surprise medical billing to a collection 01-01-20; it is to the point there is no ambiguity.
My question is will the Credit Reporting Agencies remove this entry being that the collection agency is in violation of NM State Law . I.e collection(s) was entered on Jan 01-01 2020 ? I did send the request for verification , copies of the insurance paid in full invoices by ChampVA for the ER services as well as citing the law in section 14 , where to download a signed copy of the law by the Governor and the State agency phone number and web site where it is enforced.
Taken from the New Mexico Surprise Billing Act Office of OSI ( Office of Superintendent of Insurance NM )
SECTION 14.
"HEALTH CARE PROVIDERS--SURPRISE BILLING PROHIBITED.-
A. A provider shall not knowingly submit to a
covered person a surprise bill for health care services,
which surprise bill demands payment for any amount in excess
of the cost-sharing amounts that would have been imposed by
the covered person's health benefits plan if the health care
service from which the surprise bill arises had been rendered
B. It shall be an unfair practice for a health
care provider to knowingly submit a surprise bill to a
collection agency.
Unfair practices are actionable under New Mexico law and subject to treble damages.
The law is 24 pages long, I have read the entire act . It is by far the most powerful law like it in the United States, and I have read many. In short surprise billing is over in New Mexico . Patients can sue collection agencies, their clients as well as the hospitals and MD's. Damages are three times the amount allowed by law. It has teeth .
