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  1. #1
    Join Date
    Aug 2011
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    Default Received a Hospital Bill 5 Years After Service Date

    My question involves collection proceedings in the State of: S.C.

    I received a hospital bill from a collection agency 5 years after the date of service. I had never received a bill prior, was under the impression the insurance paid it all (because I paid the surgeon and assumed they got hit with the deductible). I sent a letter to the agency registered mail denying responsibility, denying validity of debt, informed them that in my state, statute of limitation was up at 3 years and to cease and desist contact. I also sent same letter to the hospital, registered as well. This was last year, haven't heard a word from either in a year. So now its 6 yrs after date of service, the actual hospital is now sending a bill to pay or else they are going to use the "Setoff Debt Collection Act" and take the money from my tax return next year. Now, this doesn't seem legal to me. What trumps the other? Statute of limitations or the Setoff Act? Thanks in advance.

    p.s. Have only a week to reply to them (again registered mail)

  2. #2
    Join Date
    Apr 2009
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    Somewhere near Canada
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    35,894

    Default Re: Received a Hospital Bill 5 Years After Service Date

    Is this a VA/military hospital debt?

    Because that's the only reason I can think of why they might be able to touch your tax refund.

    Read more here

  3. #3
    Join Date
    Aug 2011
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    6

    Default Re: Received a Hospital Bill 5 Years After Service Date

    No, not VA or Military of any kind. But they have a connection in some obscure way to be able to do this. I've heard of this hospital and another one in town doing it as well. Must be state thing.

  4. #4
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    Default Re: Received a Hospital Bill 5 Years After Service Date

    Please read the link I provided

    There are only a tiny handful of creditors who can actually touch your IRS tax refund. This is Federal law.

  5. #5
    Join Date
    Jan 2006
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    38,867

    Default Re: Received a Hospital Bill 5 Years After Service Date

    to be able to utilize that law, they must be considered a "claimant agency" as described here:


    (1) "Claimant agency" means a state agency, board, committee, commission, public institution of higher learning, political subdivision, or other governmental or quasi-governmental entity of any state or the United States. It includes the South Carolina Student Loan Corporation, housing authorities established pursuant to Articles 5, 7, and 9 of Chapter 3 of Title 31 and the Internal Revenue Service, and the United States Department of Education. It also includes a private institution of higher learning for the purpose of collecting debts related to default on authorized educational loans made pursuant to Chapter 111, 113, or 115 of Title 59. "Political subdivision" includes the Municipal Association of South Carolina and the South Carolina Association of Counties when these organizations submit claims on behalf of a county or local governmental or quasi-governmental entity. A political subdivision who submits a claim through an association is a claimant agency for the purpose of the notice and appeal provisions and other requirements of this chapter.
    was this a state or county hospital?

    this is a state law. I do not believe they can attach your federal tax return under this law, only your state return.



    http://www.scstatehouse.gov/code/t12c056.htm

  6. #6
    Join Date
    Aug 2011
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    6

    Default Re: Received a Hospital Bill 5 Years After Service Date

    Yes, the letter stated it would take it out of state taxes, not federal. But, I think the statute of limitations should come into play. They gave me the instructions on how to "appeal" this. I plan on taking it on full force. I just wondered if SoL vs. Setoff Act, which would win?

  7. #7
    Join Date
    Aug 2011
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    6

    Default Re: Received a Hospital Bill 5 Years After Service Date

    I just found this about my state: "if the Hospital is a participant in the set-off debt collection program run by the State's department of revenue as authorized in chapter 56 of title 12 of the SC Code. This specifically authorizes the department of revenue to garnish tax returns for participating agencies, such as public hospitals."

    ....Okay, so maybe they can take your refund, but does the statute of limitations play into this at all on the legality of it?

  8. #8
    Join Date
    Jan 2006
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    38,867

    Default Re: Received a Hospital Bill 5 Years After Service Date

    I saw nothing in the law that would allow for a longer SOL than other statutes that address the issue. Doesn't mean there isn't something somewhere that extends the SOL but that alone does not appear to do so.

  9. #9
    Join Date
    Aug 2011
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    6

    Default Re: Received a Hospital Bill 5 Years After Service Date

    Thanks everyone I certainly hope the SoL wins out on this medical bill. I'm gonna fight it.

    I don't mind paying what I owe, but I honestly think my account was buggar'd up and they have no way to prove the validity of it...and neither do I since I've gone through multiple insurance companies since what I had over 6 yrs ago.

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