Medical Debts
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Do medical debts expire?
Medical debts are generally considered close-ended credit contracts with a definite pay-off time limit and statute of limitation.
Unless you have a separate agreement, medical debts are usually payable at the time services are rendered or, in some cases within 30 days.
Check your State's SoL here...
Statutes of Limition by State
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Do Medical Debts fall under the Fair Debt Collection Practices Act?
Yes! Medical Debts and bills fall under the Fair Debt Collection Practices Act because medical debt meets the definition of a "debt" under rule 803(5):
This rule defines "debt" as, "a consumer's obligation to pay money arising out of a transaction in which the money, property, insurance, or services are primarily for personal, family, or household purposes."
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My medical provider failed to bill my insurance company, am I still responsible for the debt?
Some common myths:
1. Medical providers are required to bill your insurance company.
2. Insurance companies have to pay your medical bills.
The truth is, you are responsible for paying your medical debts. Now, if you happen to have medical insurance, AND the insurance company receives the medical bill in accordance with its stated requirments AND the medical service is covered under the policy, then and only then is the insurance company responsible for paying the debt.
Pay special attention to the words, "receives the medical bill in accordance with its stated requirments" because this is what gets people into trouble more often than not.
As a convenience, most medical providers offer to bill your insurance company. However, accepting their offer does not relieve you of the responsibility of ensuring the medical bill gets paid.
It's not uncommon for medical providers to submit medical bills after an insurance company's deadline for filing. In some cases, the provider may, for a number of odd reasons, not submit the medical bill at all. Regardless of the reason, the bottom line is that the consumer is still responsible for ensuring the insurance company "receives the medical bill in accordance with its stated requirments"!
In some cases, your insurance company may reject the bill or flat out refuse to pay. The fact that your insurance company did not pay is not the medical provider's concern! The medical provider has the right to expect you to pay the bill in a timely manner.
You may have to argue with your insurance company and even go through dispute resolution but while you're doing that, the medical provider is still entitled to timely payment.
The best thing you can do is communicate with your medical providers to let them know you are working to resolve the issue. In the end, you may have to pay the provider yourself and then work with your insurance company to get reimbursed.
Always read the medical provider paperwork (contract for services rendered) carefully!
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