Collection of Medical Bills
In many respects, collection for medical debts is like collection for any other debt. Refer to our several other Debt Collection topics for more information. There are, however, certain circumstances in which you may have special rights – or responsibilities – when the debts are for hospitalization or medical treatment.
Can I be responsible for my spouse’s medical debts?
If you signed any documents agreeing to be responsible, the hospital, doctor or medical provider can collect from either you or your spouse.
Otherwise, you may normally be liable for your spouse’s medical debts only if:
- At the time of medical treatment, your spouse was unable to pay; and
- At the time of treatment, you were able to pay.
Finally, you may be liable if you are divorced, and the divorce decree ordered you to be responsible for your spouse’s debts – if you don’t pay, your spouse may bring you back to court for payment.
What if the debt is covered by Medicare or Medicaid?
A hospital cannot collect from you if the bill is covered by Medicare. Similarly, if the bill has been paid by Medicaid, hospitals or doctors can’t collect from you, even if the payment is less than they normally charge.
If the hospital or doctor did not submit the bill to Medicare or Medicaid, and collects from you, you may wish to seek legal representation, because you may not have to pay the bill.
What if the treatment was for injuries caused by someone else?
You should seek the advice of an attorney for a possible personal injury claim. Remember, all personal injury claims have filing deadlines called “statutes of limitation,” so it is important to talk to an attorney as soon as possible. If your case is a strong one, most attorneys will accept the case on a “contingency fee.” This means you would pay your attorney fees out of what you win if you win your case.
Sometimes, an attorney can negotiate with the hospitals or other medical providers to stop collection while you pursue the claim against the party who injured you. The medical bills will normally be paid when you recover money from the party who injured you.
What if I believe the doctor or hospital was negligent?
Again, talk to an attorney if you believe the doctor or hospital was negligent or careless, and you were injured as a result. This includes infections acquired while you were in the hospital. Remember, there are time deadlines by which any claims must be filed, and you should talk to an attorney as soon as possible.
Are there other possible sources of payment?
- Workers’ Compensation may be available if you were injured in the course of work.
- If you believe you are disabled, and are not covered by Medicaid, consider applying for Medicaid assistance immediately. Medicaid will cover bills for medical treatment during the three months before the month you apply, if certain conditions are met.
- You are eligible for Medicare if you have been receiving Social Security Disability for two years.
- If you are divorced, find out if this is a debt that your ex-spouse, or his/her insurance, should pay.
- You may wish to seek legal advice if you have insurance which refused to pay. You may also wish to submit an appeal on your own – most insurance plans have a grievance procedure for denials of coverage.
- Under some circumstances, the Township Trustee is a possible source of payment. Advance approval may be required.
What if the bill is sent to a collection agency or attorney?
The collection agency will then try to collect the debt. You have certain rights against a collection agency. See our separate topic, Debt Collectors, for information about your rights.
What about bankruptcy?
In most cases, medical / hospital bills can be discharged in bankruptcy, along with other debts. It doesn’t matter if the debt has been referred to a collector, or if you have been sued.
Consider talking to an attorney, if –
- A nursing home tries to collect your parent’s nursing home bills from you.
- You are sued for medical treatment you received while under age 18.
- You are having a dispute with the Veterans Administration over payment.
- The medical provider or collection agency claims you owe “collection costs” or attorney fees – they can collect such charges only if you have agreed to them in writing.
Last revised: 7-2003
LSC Code: 1020199
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