How Do I Handle $47 Debt Collection
My question involves collection proceedings in the State of: Michigan
I have been contacted by a collection agency about a balance of less than $47 from a medical clinic.
The time of business with the clinic was September 2008 and February 2009. I was invoiced after two September appointments with an unexpected amount. I contacted the clinics billing representative; she explained the balance was a coding discrepancy on the insurance company’s part. She said there where other patients with the same issue and she would contact the insurance provider. I received another invoice in December of 2008 and followed up the billing representative again. She indicated that she had a call placed with the insurance company. After my second call I never received another invoice from the clinic; not even after the February 2009 appointment.
What is the best way for me to handle this? Do I dispute the claim or do I dispute the claim and pay the balance. Is there a better suggestion? Also who do I contact the collections agency, the medical clinic, or the insurance company or do I copy all three in written form?
Re: How Do I Handle $47 Debt Collection
Quote:
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Chris001
My question involves collection proceedings in the State of: Michigan
I have been contacted by a collection agency about a balance of less than $47 from a medical clinic.
The time of business with the clinic was September 2008 and February 2009. I was invoiced after two September appointments with an unexpected amount. I contacted the clinics billing representative; she explained the balance was a coding discrepancy on the insurance company’s part. She said there where other patients with the same issue and she would contact the insurance provider. I received another invoice in December of 2008 and followed up the billing representative again. She indicated that she had a call placed with the insurance company. After my second call I never received another invoice from the clinic; not even after the February 2009 appointment.
What is the best way for me to handle this? Do I dispute the claim or do I dispute the claim and pay the balance. Is there a better suggestion? Also who do I contact the collections agency, the medical clinic, or the insurance company or do I copy all three in written form?
I can't comment about Michigan law, I'm in NY and had billing disputes with a hospital, where afterwards they placed me for collections.
What I did was I filed a complaint with the NY State insurance dept, who in turned started a complaint file, and the requested a response from the insurance company. The insurance company then informed the state in writing that the bill was paid in full.
A collection agency later contacted me, so I sent the Insurance Dept correspondence to them. At this point, the collection agency was in denial, insisting the amounts are still due, when I pointed out to them with what I got, under NY State Health Dept rules, I'm entitled to binding arbitartion, all collections would have to stop, with the loser paying the adminstrative fees.
Since I have documents in hand showing it's paid in full, I knew the rules of the game, the collection agency had little choice.
My suggestion is to contact your local state reps, assemblyman or senator to get to to the correct state agency, and how issues like this is handled under your state's regulatory agencies. It's certainly not something an attorney would handle.
Re: How Do I Handle $47 Debt Collection
Reply to the debt collection agency within 30 days and deny the claim.
Check if your state requires collection agencies to be licensed. Go to the State Attorney Generals web site and see if the collection agency has a license to operate in your state. If not report them. There will be instructions on how to do so.
Check what rules your state has regarding dealing with debt collecters.
The collection co. has most likely bought the debt from the medical facility.
They will have to come back to you with proof that you owe the debt.
Was this an MRI by any chance?
Re: How Do I Handle $47 Debt Collection
do you have a PPO insurance and was this a listed provider? If so, you need to contact your insurance provider and apprise them of the situation.
If you believe the billing is in error, you need to send a letter of dispute to whomever sent you the collections letter. You also need to request verification of the debt. The verification is supposed to be automatic if you dispute the debt but it doesn't hurt to include it in the letter.
all of this has to happen within 30 days of receipt of your dunning letter.
If you do not dispute the validity of the debt, pay the bill.
Re: How Do I Handle $47 Debt Collection
Thanks for the responses. The amount is so minimal I don't know if its worth the time and hassle to dispute the claim.
Re: How Do I Handle $47 Debt Collection
That is exactly how these scum earn their living. People who pay just to avoid a dispute.