Medical Debt in collections automatically removed once paid????

[Anonymous]

Can anyone confirm if Medical debts are automatically removed from your credit reports once paid? I found this on Credit.com:

• Medical Debts Are Removed Once Paid: While most collections remain on your credit report for seven years, medical debt is removed once it has been paid or is being paid by insurance. Unpaid medical debt in collections will still remain on your credit report for seven years from the original delinquency date.

If this is true, I will pay RMS this phantom $79 now and get it over with.

Any knowledge on this matter is greatly appreciated.

Thanks

[RobertEG]

That policy is based, not on statute or regulation, but rather upon a legal settlement agreement signed by the big-3 CRAs and the office of the attorney general of several states, resulting from civil action taken by the offices of the AG.

That agreement is titled "ASSURANCE OF VOLUNTARY COMPLIANCE/ ASSURANCE OF VOLUNTARY DISCONTINUANCE", and was dated May 2015.

The agreement has numerous provisions, only one of which relates to medical collections.

The CRAs agreed not to include any reported medical collections in their credit reports until after 180 days from date of first delinquency, and additionally to remove any medical collection ultimately shown to have been paid in full by insurance,  regardless of date reported or date of first delinquency.

As a follow-up, the big-3 CRAs have also published their own policy document, titled the "National Consumer Assistance Plan," that includes most of the provisions agreed to in the settlement agreement.

Either the settlement agreement itself of the subsequent National Consumer Assistance Plan issued by the CRAs can be used as authority for carrying out the agreed provisions.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Can anyone confirm if Medical debts are automatically removed from your credit reports once paid? I found this on Credit.com:

• Medical Debts Are Removed Once Paid: While most collections remain on your credit report for seven years, medical debt is removed once it has been paid or is being paid by insurance. Unpaid medical debt in collections will still remain on your credit report for seven years from the original delinquency date.

If this is true, I will pay RMS this phantom $79 now and get it over with.

Any knowledge on this matter is greatly appreciated.

Thanks

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The key in your post is that if it is paid by insurance. If you pay it, it remains. If your insurance will cover it, they will automatically delete the CA. Otherwise, you need to work out a PFD (pay for delete) agreement with the CA.

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Thanks for the insight. 

[gdale6]

Medical collections are some of the easiest to get removed from your CRs, here are the steps that you should follow to address them:

1. Call the OC and see if insurance can be billed, (or-rebilled), collections ultimately paid by insurance get removed per new rules that came from CRAs settlement with 22 state AGs. If not then
2. see if you qualify for Charity Care, if not then
3. ask that they recall the collection in exchange for full payment
4. Send the reporting CA a PFD offer
5. Google the HIPAA Process and contact its creator for help, this process cannot be discussed in any forum of myFico.

[Anonymous]

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@gdale6 wrote:

Medical collections are some of the easiest to get removed from your CRs, here are the steps that you should follow to address them:

1. Call the OC and see if insurance can be billed, (or-rebilled), collections ultimately paid by insurance get removed per new rules that came from CRAs settlement with 22 state AGs. If not then
2. see if you qualify for Charity Care, if not then
3. ask that they recall the collection in exchange for full payment
4. Send the reporting CA a PFD offer
5. Google the HIPAA Process and contact its creator for help, this process cannot be discussed in any forum of myFico.

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Thanks for the info, I went with #1.  The OC accpeted payment and will withdraw the account from collections. They said they send updates 1x a week and the CA should delete the information within 2 weeks. Thanks for the info, this was my only collection, glad to have it gone.