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  1. #1
    Join Date
    Aug 2012
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    4

    Default Hospital Bill Sent to Wrong Address

    My question involves collection proceedings in the State of: CA

    Hi,

    I apologize for this long post….

    I hope someone can help me with this problem. In 10/2011, I had an ER visit and was admitted for a hospital stay. On Saturday 8/11/2012, I was reviewing my Experian credit report and noticed a debt in collection from collection agency Grant & Weber in Calabasas, CA (the hospital is also in CA), for $100, apparently the co-pay amount that my insurance didn’t cover. I didn’t recall ever receiving a bill from the hospital or any notification from the collection agency about this amount. According to the Experian credit report (TransUnion and Equifax don’t show any collection records)

    I immediately contacted the hospital that same day, but was told the billing department was closed until Monday, 8/13. I called the billing department the morning of 8/13 (today) and found out that the hospital had the correct street number and name for me, but the incorrect city name and zip code, thus explaining why I didn’t receive a bill.

    I don’t understand why the hospital simply didn’t call me, though, and a hospital financial advisor couldn’t explain that, either. Instead, I was told hospital policy is that when mail is returned as undeliverable, the account is sent to a collection agency. My credit report shows that the collection had been on my credit report since 5/2012. It also shows my correct address and my phone number, so I’m at a loss why Grant & Weber didn’t contact me about the debt.

    To make things worse, I had another ER visit to the same hospital in 5/2012. Although the first person I spoke with in patient accounting said that bill hadn’t been sent to the collection agency (despite a new account number with the same wrong address) and allowed me to pay it over the phone, another person claims the bill was sent to the collection agency on 8/11 or 8/12. My credit report shows a soft credit inquiry from Grant & Weber on 01/18/2012 and 8/12/2012.

    I’m more than willing to pay the $100 co-pay from the 10/2011 hospital stay, but I need to have that collection debt removed from my credit report. I've left a message with the Hospital Billing Manager, but haven't had a return call yet.

    I’d like to know both my legal rights in this situation (if any) and how to get that collection record removed from my credit report. Please let me know. Thanks!

  2. #2
    Join Date
    Jul 2012
    Posts
    479

    Default Re: Hospital Bill Sent to Wrong Address

    You don't have a hope of getting the derog removed from your report until the debt is paid (and technically, hospital doesn't have to remove it even then, though it may decide not to challenge/"validate" if you dispute entry with the reporting agency.

    Ultimately, unless you know for a fact you handed over payment info, I wouldn't hinge any ire on not having received a bill. A creditor isn't obligated to send a bill (unless your contract binds them to such a promise, which it won't).

  3. #3
    Join Date
    Aug 2012
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    4

    Default Re: Hospital Bill Sent to Wrong Address

    Quote Quoting Foster_Foster
    View Post
    You don't have a hope of getting the derog removed from your report until the debt is paid (and technically, hospital doesn't have to remove it even then, though it may decide not to challenge/"validate" if you dispute entry with the reporting agency.

    Ultimately, unless you know for a fact you handed over payment info, I wouldn't hinge any ire on not having received a bill. A creditor isn't obligated to send a bill (unless your contract binds them to such a promise, which it won't).
    Thanks for the response. I understand that my ire itself has no legal bearing on the issue. I guess my best hope is to try to pay the hospital the $100 directly, request they recall the debt from the collection agency, and then dispute the collection as inaccurate with the credit bureau.

    The only legal aspect I could discover about this is from CA AB 774:

    (d) For a patient that lacks coverage, or for a patient that provides
    information that he or she may be a patient with high medical costs, as
    defined in this article, a hospital, any assignee of the hospital, or other
    owner of the patient debt, including a collection agency, shall not report
    adverse information to a consumer credit reporting agency or commence
    civil action against the patient for nonpayment at any time prior to 150
    days after initial billing.

    Even if this applied to me, it's way past 150 days on the 10/2011 debt, although not past the limit for the 5/2012 ER visit.

    I was hoping that some enlightened consumer law could protect me from a mistake made by the hospital in terms of billing address, but I guess not. Your statement that the creditor isn't obligated to send me a bill might be correct, but seems nonsensical to me. I get that "the law is the law" but hope the hospital will do the right thing in this situation.

    Thanks again for your reponse.

  4. #4
    Join Date
    Sep 2010
    Location
    Florida
    Posts
    153

    Default Re: Hospital Bill Sent to Wrong Address

    Best thing to do is contact Grant & Weber and pay them but before you do ask if they will delete it from your report if you pay in full. "MOST" of the time they will delete if paid in full. If they don't you can try a dispute with the credit bureau after the fact. Grant & Weber may choose to not respond which then in turn will get it deleted by bureau. ymmv though

  5. #5
    Join Date
    Jun 2006
    Location
    Massachusetts
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    24,521

    Default Re: Hospital Bill Sent to Wrong Address

    FYI generally you are required to pay your co-pay at the time of service.

  6. #6
    Join Date
    Jan 2006
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    38,867

    Default Re: Hospital Bill Sent to Wrong Address

    Thanks for the response. I understand that my ire itself has no legal bearing on the issue. I guess my best hope is to try to pay the hospital the $100 directly, request they recall the debt from the collection agency, and then dispute the collection as inaccurate with the credit bureau
    but it isn't inaccurate. You have no basis to demand its removal.

    You need to find out if the hospital sold the (oldest) debt or has just hired the CA to attempt to collect the debt. If the prior, there is almost no chance of it getting removed. If the hospital still owns the debt, ask them if, considering the error, would they be willing to remove the derogatory report for a payment in full.


    This is not that old of a debt so the hospital might still own it.

  7. #7
    Join Date
    Aug 2012
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    4

    Default Re: Hospital Bill Sent to Wrong Address

    Quote Quoting jk
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    but it isn't inaccurate. You have no basis to demand its removal.

    You need to find out if the hospital sold the (oldest) debt or has just hired the CA to attempt to collect the debt. If the prior, there is almost no chance of it getting removed. If the hospital still owns the debt, ask them if, considering the error, would they be willing to remove the derogatory report for a payment in full.


    This is not that old of a debt so the hospital might still own it.
    Yes, the debt is accurate. I was speaking in the context of having the debt recalled back to the hospital, paying it, and, since it the collection agency was no longer involved, being able to remove the debt from my credit report. Whether that idea is valid or not, sorry I wasn't clearer.

    I too hope the hospital didn't actually sell it to the CA; otherwise, as another poster mentioned (thanks!), I'll have to try to negotiate with the CA, who, as I said before, hasn't contacted me about the debt.

    - - - Updated - - -

    Quote Quoting cbg
    View Post
    FYI generally you are required to pay your co-pay at the time of service.
    That would have been the ideal situation (obviously, it would have avoided all the subsequent problems), but wasn't the case back in 10/2011 or 5/2012.

  8. #8
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Hospital Bill Sent to Wrong Address

    =gbp;642221]Yes, the debt is was accurate. I was speaking in the context of having the debt recalled back to the hospital, paying it, and, since it the collection agency was no longer involved, being able to remove the debt from my credit report. Whether that idea is valid or not, sorry I wasn't clearer.
    that still will not remove the report. It will be updated to report the debt paid but it will still show, including the "lates".

    I too hope the hospital didn't actually sell it to the CA; otherwise, as another poster mentioned (thanks!), I'll have to try to negotiate with the CA, who, as I said before, hasn't contacted me about the debt.
    call the hospital. The CA is in the business of collecting on debts. They don't get paid if the debt is recalled and then paid. Not saying they would lie but I am saying they might not be completely open about the situation either.

  9. #9
    Join Date
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    Location
    Massachusetts
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    Default Re: Hospital Bill Sent to Wrong Address

    That would have been the ideal situation (obviously, it would have avoided all the subsequent problems), but wasn't the case back in 10/2011 or 5/2012.

    Actually, it has been the norm ever since managed care went into effect back in the 70's.

  10. #10
    Join Date
    Aug 2012
    Posts
    4

    Default Re: Hospital Bill Sent to Wrong Address

    Incidentally, there is S. 2149: Medical Debt Responsibility Act of 2012, which says in part:

    "Amends the Fair Credit Reporting Act to prohibit a consumer reporting agency from making any report containing information related to a fully paid or settled medical debt that had been characterized as delinquent, charged off, or in collection which, from the date of payment or settlement, antedates the report by more than 45 days".

    The bill has been referred to the committe and the probability of passage is thus very low. At the risk of ranting, I think consumers should have better protection against this type of situation, where an unknown-about medical bill can harm one's credit.

    - - - Updated - - -

    Quote Quoting cbg
    View Post
    That would have been the ideal situation (obviously, it would have avoided all the subsequent problems), but wasn't the case back in 10/2011 or 5/2012.

    Actually, it has been the norm ever since managed care went into effect back in the 70's.
    I can only report my experiences and that's what I've done. I don't think it would be productive to discuss this further unless it had some relevancy to solving my problem. Thanks.

    - - - Updated - - -

    Quote Quoting jk
    View Post
    that still will not remove the report. It will be updated to report the debt paid but it will still show, including the "lates".

    call the hospital. The CA is in the business of collecting on debts. They don't get paid if the debt is recalled and then paid. Not saying they would lie but I am saying they might not be completely open about the situation either.


    Thanks. As I stated in my OP, I left a message (voice-mail) with the Hospital Billing Manager (actually one early this morning and one late this afternoon), and she hasn't returned my call yet. If I can get the hospital to arrange that the debt get removed from my credit report and they agree to do this, I'll ask for written documentation of that commitment.

    If I have to work with the collection agency, I'll make the same request of them.

    I understand it's possible that neither of these tactics will work.

    - - - Updated - - -

    Finally, again my thanks to everyone for taking the time to respond, regardless of the outcome.

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