Credit Damaged for Medical Bill I Do Not Owe

[Lawquestion4729]

Firstly, I thought it was illegal (At least in the state of PA) to damage a persons Credit for issues related to Medical Bills. In 2004 I went to the emergency room. My insurance card showed my financial obligation for an Emergency Room Visit was $50.00. I paid my $50.00 obligation. After the hospital submitted the original ER bill to my insurance, the hospital then submitted an additional bill for $300.00 to my insurance company (For the Radiologist who reviewed the X-rays taken during my ER visit). My Insurance Co. refused to pay it, indicating it was a duplicate and Fraudulent bill. The hospital then sent ME the bill, which I refused to pay stating my financial obligation of $50 for an ER visit had been satisfied. It then went to a collection agency, then to my Credit Report in 2006 as an unpaid Collection which devastated my pristine credit.
I wrote a VERY detailed dispute letter to Equifax (Following their dispute process), stressing the fact that my financial obligation for an ER visit was $50. I told them that the hospital charging me an additional $300 for that visit, was illegal and contrary to the Contract that the hospital negotiated with my Insurance Company (Aetna) for Emergency Room visits. Equifax allegedly performed an investigation, and curiously did not contact me. Their response was that the debt is legal....period. I know this a debt I do not owe, but it has dropped my FICO score from 803 to 722. I take my Credit very seriously, and have never had a late payment my entire life. Any suggestions on what my next move should be would be greatly appreciated.

 

[Theresagail]

Dispute it again, this time include the letter that the insurance wrote stating this is a duplicate and fraud bill.

 

[Lawquestion4729]

Thank you for your response, but that is one problem I have. I would have submitted that information if I had it. I was told back then in 2004 by an Attorney that it was illegal to damage a person's credit IN THE STATE OF PA for unpaid medical bills, so I thought it was a dead issue. DOES ANYONE KNOW IF THIS IS TRUE, OR WAS TRUE IN 2004?
I did not save anything, and now I feel quite bad for not keeping those records. I do plan to contact the insurance company I had in 2004 (Aetna), which is unfortunately NOT the insurance Company I have now, to see if they still have records that go that far back. Six years is a long time, but I am going to give it a shot.

 

[Theresagail]

NO that is not true, Hopefully Aetna will get you that letter again. If they dont have it any longer etc.. I dont know what you could do but keep disputing it till one day they fail to respond

 

[diy4law]

I don't believe it's illegal to damage a person's credit over an unpaid medical bill. I believe like all creditors they have a right to report it. Many times even though a charge seems excessive because the insurance company did not cover it it's best just to pay it and be done with it. It's not worth having $300 destroy your credit.

 

[Lawquestion4729]

Thanks for your input diy4law! If I thought for a second that not paying the bill would have affected my credit, I would have paid it immediately. I got some BAD information instructing me they can not do that in the state of PA. Now, of course, I am kicking myself. Luckily it was only resported to ONE of the THREE collection agencies. FYI....The information I got on MYFICO.COM about this collection event, said even if I paid the $300.00, it would make no difference and the collection would stay on my credit report and still keep my score down for at least 7 years. The collection went on my report in early 2006. If I thought paying the $300.00 would make a difference, I would pay it in a freaking MINUTE. I plan to go to the hospital and talk the the billing manager about this, and see if I can work something out. Maybe they can authorize the collection agency to remove the collection action from my credit report. I think diplomacy is the KEY here.

 

[concerned113009]

You should not have paid that bill. If you were to pay that bill then you would need to sue to get your money. You should try to get the info from the insurance company as soon as possible and sue the provider, if you are able get an attorney and consider a class action law suit. Companies bank on the consumer or patient not paying attention and being intimidated by the law. They prey on the people they should help. If you prove that it was a duplicate bill and your responsibility was on 50 them they will settle but it time for the consumer to take a stand and say it is not okay that the providers billing staff is making mistakes that can turn someone's life 180 degrees and all the provider gets is a slap on the wrist while the patient goes through what seem like a life of trying to clean up someone elses mistake. Dont let them get off if you dont owe they should pay. Ask the judge to audit them for that year they would have to report it (the first insurance payment) as accounts received when closing their books this would also prove that they received payment and this is a duplicate bill. This is advice I am not an attorney.