First of all thanks to all of you that have contributed in the past. You've been a great help to myself and others. You can't begin to know what an impact you've had! I have a CA account on my credit report which evidently ended up being a medical bill. I sent the CA a validation letter. They did not send me a response within 30days. I then sent them a letter stating I would only work with the OC. So the OC called me trying to get me to pay the debt. I told them I need proof that this account is mine. They sent me a screen print/report showing alleged dates from my previous visits and the total cost for each visit and the cost of the collection agency in addition to it. The total matches the amount on my credit reports. Is this proper validation? Another thing is that the CA account is no longer on my credit reports. Is this normal or did they get scared? What does it mean? The account if only for about $200 and honestly I'd just as soon pay it if it meant it would stay off my credit report. Any advice on what I should do as my next step? All help is appreciated. Thanks.
I would pay the debt, directly to the medical office, IF it is for your visits. I would request/demand that there be NO reporting to CRAs. As for the removal of the CA tradeline, I just learned that this is the "proper procedure" if an account is returned to the OC. (See my thread re: "CDIA Manual"). So, this is a case where the CA did exactly what they should do! In my opinion, medical bills seem to be a "No Win" whichever way you deal with them. Between errors, insurance companies trying to get out of paying, confusing deductibles, on and on........it is just best (to first) pay the bill, and then have the discipline to perhaps fight it out with the insurance company later.
The OC has probably pulled the account back from the CA in hopes of getting paid. If you send them a PFD they may accept that and call it good. Are the balances correct, i.e. insurance has paid for everything that was allowed under contract.
The balances appear to be correct. Is sending them a PFD letter good enough? If they sign and return a PFD letter are they legally bound to do so? IIRC I read a thread where I thinkn "Collection Agent" said that isn't good enough, that you have to write it on the check somewhere? Thanks again for your help.
PFD letters may or may not work. Some CA's and JDB's will do them, some will not. A bit of experience with CA's and JDB's will teach you there is no connection between what they are legally bound to do, and what they actually do. They do what they can get away with. If you send your personal check to a CA, you significantly increase the chances of your bank account being drained. Think about it: they will have your ABA routing number, your bank account number, your name, your address, your SSN.... Stories abound...plenty of stories, more than I care to tell you, about unethical CA's and JDB's taking advantage of a consumer's naivete in sending their personal checks with a PFD or any other payment. If you get their committment to honor it, and they do honor it, send a money order, not your personal check. Consider a CA or a JDB the devil, and act accordingly. Assume the worst.
If you send them a PFD and they sign it they are required to agree to those terms. Writing on the check is not a PFD it's a restrictive endorsement.
You are dealing with the OC right now, so leave the CA out of the picture. Send the OC the PFD and see what happens.
Before you do that, take a look at Why Chat's site, a section of which specifically deals with paying off medical debts. Here it is: http://whychat.5u.com/hipltr.html
That letter is not appropriate for this case as the debt is NOT paid, and the OP would have to send this letter after paying the debt to the OC, in hopes they believed the following to be accurate: "You are required under the FCRA to accurately report the status of any account to the credit bureaus, and you are prohibited under the HIPAA and State privacy regulations from doing so on a PAID account, as there is no longer any permitted business purpose." As long as the CA is reporting either the term MEDICAL or the DR OFFICE name, as long as it doesn't disclose why the dtr was being seen or the name of the office doesn't disclose the nature of their practice, which is protected under PHI, there is no violation, right?: In general, PHI encompasses substantially all "individually identifiable health information" that is transmitted or maintained in any medium. "Individually identifiable health information" includes health information that is created or received by a health care provider, health plan, employer, or health care clearinghouse, and that relates to an individual's physical or mental health or condition, including information related to an individual's care or the PAYMENT for such care. While I dont do, and have never done, nor want to do, medical collections, almost every CR I look at has medical collections on it and they are listed with the CA and it lists MEDICAL or the DR's OFFICE. If the above is true...there are thousands of violations.
collectman: You need to read the whole page. It is done by someone who knows far, far, more than you ever will about medical collections law, HIPAA, PFD, and paying medical debts. Yes, I agree, there are thousands of violations, you got that right! I guess you aren't that dense after all? Just grossly biased, eh?
I read the whole page, and it's not 100% correct. Medical collections, providing of course they are accurate, can be reported to the CR just like a normal account. http://www.hipaadvisory.com/REGS/finalprivacy/gpayment.htm Q: Does the rule prevent reporting to consumer credit reporting agencies or otherwise create any conflict with the Fair Credit Reporting Act (FCRA)? A: No. The Privacy Rule's definition of "payment" includes disclosures to consumer reporting agencies. These disclosures, however, are limited to the following PHI about the individual: name and address; date of birth; social security number; payment history; account number. In addition, disclosure of the name and address of the health care provider or health plan making the report is allowed. The covered entity may perform this payment activity directly or may carry out this function through a third party, such as a collection agency, under a business associate arrangement. We are not aware of any conflict in the consumer credit reporting disclosures permitted by the Privacy Rule and FCRA. The Privacy Rule permits uses and disclosures by the covered entity or its business associate as may be required by FCRA or other law. Therefore, we do not believe there would be a conflict between the Privacy Rule and legal duties imposed on data furnishers by FCRA.
10. Debt Collectors and Medical Bills Collection of medical debt is a major consumer issue. A recent study by the Federal Reserve Board found that nearly half of all collection actions appearing on consumer credit reports are for collection of unpaid medical bills. www.federalreserve.gov/pubs/bulletin/2003/0203lead.pdf May a doctor or hospital refer an overdue medical bill to a collection agency? Yes. HIPAA, the medical privacy rule that became effective in April 2003, allows a health care provider to disclose information to a collection agency. HIPAA also says an overdue bill can be reported to a credit reporting agency. Collection of an unpaid bill is considered a payment activity under HIPAA. Thus, it is not necessary that you give your consent before a medical bill is referred to a collection agency or before a negative entry is placed on your credit report. However, you may dispute a medical bill with the health care provider or a collection agency. If you do, the fact that you have lodged a dispute should also be revealed if a negative report is made to your credit report. Can my medical information be disclosed to a collector or a credit reporting agency? HIPAA says the healthcare provider or health plan may disclose only the following information about you to a collection agency or credit bureau. Name and address. Date of birth. Social Security number. Payment history. Account number. Name and address of the one claiming the debt. Of course, the name of the healthcare provider may contain clues to the medical condition of you or members of your family. Recent amendments to the federal FCRA enacted by Congress in 2003, the Fair and Accurate Credit Transactions Act, change the way medical collections appear in credit reports. The names of healthcare providers must be masked if they would disclose the type of medical condition for which you sought care. For more about medical information and new FACTA rules, see PRC Fact Sheet 6(a), www.privacyrights.org/fs/fs6a-facta.htm#7
I know there are those who will disagree with this tactic, but I would also try to speak to someone at the billing dept. of the office who can "make the deal" for PFD. Let's face it, the poor people who work in these offices are just trying to do their jobs, and get the money for their business. Most times these are ordinary people who do not want to "hurt" you with a bad credit ding. They just want to close out the billing, and making it as easy and quick as possible for them increases your chances of them "working" with you. So, pursue the PFD, but perhaps try to directly negotiate the "PFD". I've found most people will work with you if you ask for their help.
If the CA has removed their tradeline, it is very possibly the OC has pulled the account back. All the PFD will do is make sure it never gets reported again. Biz is correct, calling them may be easier on both parties and acheive the same result. Before you pay it though, ask them if the account is assigned to a CA or not.
