Hospital billing dispute

[hayhurst]

I am having a dispute with a hospital in Florida, for tests that they did. I feel that they have grossley overcharged me, compared to the charges from dignostic centers in the area. My doctor, who is a Participating provider of my medical plan advised me to have the test done at the hospital, because he said my plan would not pay for it other wise.
They never informed me of the charges and led me to believe that they were covered in full by my hospital insurance which is through my husbands insurance in NY.
They have put me with a collection agency whos has been calling and sending letters. I have paid the hospital what my medical insurance allowed and have been sending them them $10.00 a mont with letters asking that they accept that as payment infull, which they have not responded to.
What are my options?
1. Can the hospital put a lien on assets, without going to court.
2. My only income is SS. My husband is retired and only has pension and SS income. Can they be garnished.
3. Is Florida Law different then New York law concerning debtors rights. We have adresses's in New York and Florida, but are NY residents. We have a small condo in Florida?
4. Can I take any action against the doctor for misinforming me concerning my insurance, since he caused this problem. What I called him and told him of the dhospital's charges, he said he thought they were provider and "don't pay them"
Thanks for any advice.

 

[Michael Wechsler]

First of all, did you find out the costs at competing hospitals? Is it far below what you were charged? Personally, I think all of these health tests/checkups are far overpriced and it is no wonder why insurance is outrageously priced out of reach.

 

[hayhurst]

I checked with other hospitals and their price for the tests are a little lower, but still high.
My doctor ordered a ultrsound of the abdomen, and a CT scan of the abdomen and pelvic
I was charged for two Ct scans and the cost of the dye
Ct scan of abdomen $2232
Ct scan of pelvic $1784
Contrast dye $1890.
ultrsound $658
total $6564
My insurance allowed $354 for all these tests and I paid $210.
The hospital claims they base their rates on what Medicare tells them to charge.
The reports for the 2 Ct scans are completely identical expect for a different number.
The digisnostic centers charge only $150 to 275 for ultrasound and
$200 to $700 for Ct (no charge for dye)
The hospital offered 20% off the $6564 charge, but I still think that is much to high.
They have put it with a collection agency, who are now calling almost everyday.
I feel the doctor is at fault for misinfoming me about my insurance information. I have sent a an apeal letter to my insurance company asking that they at least pay a provider rate for the test but they denied it.
What other choices do I have

 

[Michael Wechsler]

Unfortunately, if this is not in an emergency situation, it would have been your responsibility to ask what it would cost before you had the treatment. It might not be a bad idea to take the 20% and, if you feel that they are overcharging, report this conduct to the state attorney general.

As I said earlier, I am shocked that medical tests are still this costly and I am suspect of how the whole system is constructed. That doesn't mean that I can challenge it by simply not paying in a certain manner. I think that our state representatives should be the one investigating how pricing works.

 

[hayhurst]

If I don't pay the balance of this bill, what legal actions would be taken.
Can they put a lein on joint assets, such as cars, bank accounts, etc? Can they just do that or must it be court ordered?

 

[Michael Wechsler]

You need a court to seize property that isn't secured by the creditor. However, if you wait, you will probably be also held liable for legal costs involved in collection.

 

[hayhurst]

Is it true that a collection agencey buys the debt from the creditor at pennies on the dollar? I have been sending small payments to the hospital, which they are accepting. I thought that as long as you make some sort of a payment, collection agencies could not bother you.

 

[Michael Wechsler]

You are correct -- at times. I wouldn't say "pennies" on the dollar but frequently far less than the total debt. You might be able to make a better deal with the collector -- however, you would want to make sure that you resolve the entire matter and get paperwork attesting to the "deal." It still doesn't mean you'll get any deal nor that something won't be filed against you if you try. You would be far from the first person to go this route, especially since most try to use it for all the wrong reasons, usually to get out of valid debts that they should pay after they received all the benefits.

 

[jmacgregor]

At a point where a debt collector feels there is a chance of complete loss, they are at their most negotiable point. In most cases, like you mentioned, the collection agency has bought the debt for significantly less than the original amount owed. If the original amount owed is paid to the debt collector, this is where they hit their maximum profit margin.
So the next question is, "what is their minimum profit margin and how can I pay that instead?" It all comes down to haggling and finding their bottom-end negotiable point. In most cases again, this is about 50% of the original owed amount. I have never heard of a debt collector going below this point, but I have heard of many people obtaining it.

Hospital bills are very expensive. From an inside perspective, I would say on a rare occasion can they really justify the charges. Bottom line is that if you need their services, you will pay their prices.

For some similar cases you may find interesting, see some of my previous postings on hospital bills.

Good luck,
jM

 

[hayhurst]

Thanks for the reply.
I intend to report the hospital to the AHCA of Florida. The thing that really aggravates me about this whole thing is, had the doctor directed me to a particpating provider for these test, it would have only cost me a $10.00 co-payment for these tests, but now I have incured a debt of over $6000.00 because of his ignorance. When I informed him of these charges the hospital made, all he said was "Don't pay them". He said he thought they were plan providers.
I guess I could sue him and the hospital, but it would cost too much for legal expences.