My medical bills have been turned over to collection agencies. What now?

I don't understand how this all works.

We got hit with quite a few medical bills after my daughter was born last year because our insurance only covered 80% of the high-risk pregnancy. We had about $2500 owed out-of-pocket to about 4 different places. 2 places have been happy with the payments we've been sending in. 1 place (the hospital) required $150 a month in payments. We told them we couldn't do that much right now, asked if they would settle for $75 and they didn't budge at all. Next thing we know we get a letter saying they turned it over to some collection agency.

The last place (another doctor that treated my wife in the hospital) immediately sent their bill to a collection agency, we never even got a normal bill from them.

What exactly can I do about this? I may have the cash to pay off the 2 that went to collection agencies, but does it matter at this point? If they've already ruined my credit by turning it in, does it benefit my credit at all to pay it all off right now?

And is there any action I can take against either the collection agencies themselves or the hospital?? Unforunately, I was told incorrectly that unpaid medical bills don't show up on credit reports, so I haven't worried about this much up till now. Now that I am finding out it does affect credit, I need help in figuring out what I should do now.

I'm hoping in the next 3 years to be able to buy a house, and I am very worried this is going to significantly hurt my credit score. Does anyone konw exactly how much (points) this can hurt a score, or is it all relative to amount owed?

aggie04ci said: Does anyone konw exactly how much (points) this can hurt a score, or is it all relative to amount owed ?Cant say exactly, but possibly ~70 points. www.privacyguard.com has a free 60 day trial and would give you a reasonably accurate answer.

Yes, I may be able to pay these off now.......but up until this point, $150/month just for that ONE wasn't possible.

aggie04ci said: It just seems insane they are so quick to ruin credit by turning them over to collection agencies.How long has it been since your daughter's birth ?

CREDITNET.COM

Alcibiades, I'm surprised you're participating in this inappropriate thread.

aggie04ci said: inappropriate?
This forum is for discussion of ways to use and leverage good credit.
This is not a forum for discussion of credit problems.
There are many such forums for that - creditnet.com being one.
You'll find plently of bad credit people there to help you.

MOZZY said: The site is for sale.
creditnet.com
Sorry for the misspelling.

This board is populated with more than its share of douchebags and trolls. OP, really, you'd get a better answer from a more supportive audience at creditnet.

aggie04ci said:
I'm hoping in the next 3 years to be able to buy a house, and I am very worried this is going to significantly hurt my credit score. Does anyone konw exactly how much (points) this can hurt a score, or is it all relative to amount owed?

I can give you an answer to this based on personal experience. About 6 months ago, I pulled my and my DH's credit in anticipation of applying for a mortgage. To my surprise, we found a collection account on DH's report for $100. It was apparently a copay from a hospital visit, but we never got a bill. I went to CreditBoards and got all kinds of advice on how to fight it. The stupid collection would not budge.

So, about 3 weeks ago, I took a risk and called the hospital. Their records showed that every bill they sent to us had been returned (we moved right after the date of service). They agreed to remove the bill from DH's credit if we paid it. So, we did. So far, it's come off of his Experian report, and we're told that it should come off the other 2 within the next week or so.

So, short story long, I can tell you that a $100 medical collection account that was less than 2 years old cost my DH about 50 points. His score the day before the collection was pulled off of his report was 656. The day the collection was pulled, his score went up to 700.

aggie04ci said: I'm hoping in the next 3 years to be able to buy a house, and I am very worried this is going to significantly hurt my credit scoreThis will raise the interest rate on your mortgage by 1% or more. On a 30 year loan for 400k, a 1% higher interest rate will cost you 161k over the life of the loan.

RallyCap said: aggie04ci said: inappropriate?
This forum is for discussion of ways to use and leverage good credit.
This is not a forum for discussion of credit problems.
There are many such forums for that - creditnet.com being one.
You'll find plently of bad credit people there to help you.

Ignore people such as this OP, they probably just have problems themselves and feed off people like you to cover up their problems. Tons of questions like this have been posted in the fatwallet finance forum. Try some of the sites they give, but don't let their slander put you down.

Sorry that you are in this position but over a year with no payments doesn't seem like the hospital or the collection agencies are being unfair. Most auto loan companies will report a 30 day delinquency why should this creditor be any different? They waited over six months, seems pretty fair to this former credit buyer.

If you have the means to pay then your best course of action would be to negotiate them taking it off the bureau with paymment in full or an arrangement. Mind you they don't have to do it but it usually is negotiable.

Sorry OP if some of the people sound harsh here but most of them are just being honest to the facts.

civ2k1 said: I'm curious since it was the wife who was pregnant, if this should only appear on the wife's credit reports. OP technically wasn't pregnant (only by association).

No, if he was, he'd have enough $$ from interviews, etc. to pay off the debts...

Seriously,

Not all collection agencies turn you over to the collection bureaus immediately. Especially if they are smaller shops. Have you tried a lump-sum settlement with them? Often-times this is the best source for pulling any negative credit reporting and working in a discount for your portion at the same time.

I would call the hospital and other providers and discuss the issue with them. First, find out how much the insurance company pays for these services. Most times, hospitals and doctors only receive ex. $55 for an x-ray or $650 for an MRI from the insurance company, yet they bill $225 for the x-ray or $2,600 for the MRI or $75 for a consult. Are they charging you based upon the same contract or fee schedule that they have with the insurance company or are you paying the inflated bill charge. Why should you pay more than the insurance company would?

Use or try and find out the medicare or medicaid fee schedule for the services that they have provided and are seeking payment on from you. Once again this is putting you in a position to bargain and negotiate with them for these services and allowing you to have some reason for them to accept a lower amount. You are no different than anyone else and have the same ability to argue these points with them. Also send them a letter stating that you are disputing these charges to prevent any collection agency from threatening to put a negative on your credit. This makes it a legal issue which until it gets decided, it is up to them to file and go to court to show that the amount is owed. This will not usually happen unless the amount is over will say $1,000. In court, that is a second time for you to challenge the billed amount and show it is inflated and not a reasonable amount based upon other providers offering similar services in the area and that they receive this amount for these services. They will run into a problem on that issue since the fee schedule or contracted amount stated above can be used to show the amount they are normally paid as stated above.

Just my 2 cents! Good Luck.

WIthout reading all the posts I'll simply reply with my thoughts.

Immediately file a rebuttal to all three credit agencies. This rebuttal
letter has to be included to any creditor who pulls your credit report.
The letter will explain just as you did to us what happend.

Keep your records of payments and keep making the payments. If you can
not make a payment in full make a partial payment but make it regularly.
Also renegotiate your obligations again if you think you're going to get
behind. They're glad to help if they think they'll be paid.

Most businesses are not set up to accept payments because that amounts to extending credit. I would NOT WORRY. Simply read the posts here. Follow through with as many interim efforts as possible. And when it comes time to buy your house I think your bank or lending institution will understand.

I have had similar problems and simply explained what happened and if that/those are your only glitches you don't have a serious worrysome problem. Just do the best you can.

have you received any calls from the collection agencies? Are they knocking at your door?

I was told by a co-worker that he got dinged from a delinquent from his medical bills. However, he then proceeded to confuse me by telling me that he contested it and won. The reasoning was because medical bills cannot show up on your credit report? I didn't really believe him, but he is a certified consumer lender. I can ask him again tomorrow. Good luck with your situation.

My sister had this problem more than once. The first time, she did nothing. The collection agencies had her served by the sheriff, they took her to court, and her wages were garnished. The 2nd time she got smarter. She went to a non-profit bill paying organization that worked on her behalf with the collection agencies, setting up payment schedules. The fee for this was quite small in exchange for all the help they gave her. It sounds to me like you need some expert, experienced advice.