Question: Bill Collectors / Insurance

grayeyes

I did my best to stay on top of the bills.  I put all my bills in order, and then I called hospitals, doctors' offices, etc., to check on the amounts owed.  Then I paid the bills (with an FSA) over the phone.  I kept detailed records of every conversation, and I always asked for receipts.

Some of my medical bills were with a collection agency contracted by the hospital.  I paid the collection agency the money they said I owed.  Eventually, the collection agency assured me that all of my bills this year were paid in full.  They said there was one bill from last year, but I had credits that would cover that bill.  OK, great... right?

The next thing I know, the collectors start calling, accusing me of not paying a large bill from last year.  They sent me more paperwork, and I went through this paperwork and all of my records. It turns out, this collection agency made mistakes with my payments:  They did not correctly apply the funds I paid toward the right bills, and some payments were not applied at all toward my bills.  They really messed up, and now they're being uncooperative.  (At one point, I started calling the collectors to turn the tables on them - "You owe me money!"  lol)

Anyway, one of the bills is a mystery:  Last year, the hospital told me (verbally only) that it was paid in full by the insurance company.  Earlier this year, the collection agency started sending letters saying I owed money on that bill.  (They agreed to apply the overpayments/credits to it.)  Now the collectors are claiming that same bill is an even higher amount now:  It has doubled to more than $300, according to the collection agency.

I checked the bill they just mailed to me, and there are added fees that read "pay reversal" next to the name of my insurance company.  So here's the question:

Would an insurance company pay a bill in full and then turn around and take back the payment? 

Right now, I'm thinking these collectors are just playing games with me and/or making mistakes.  But, I'm hesitant to call the insurance company, so I'm wondering if anyone else has encountered this situation.

Thanks in advance!

3Cbrca

The insurance company can reverese a payment if they thought they paid it in error. Speak to the hospital directly and if you end up owing the money send it directly to the hospital - send by check so that you have proof of payment and then send the canceled check to the bill collector. I was chased down by bill collectors years before I was sick- because I had the same name as someone who wasn't able to pay - even though our names were spelled differently and we we born in different years. I had never been to that hospital. Those people were horrible to me and i can't imagine how difficult it must be for you while trying to recover. If you send the check to the hospital they won't get their commission payment! They sound like they don't deserve it.

sherbab

I was having a horrible time with my insurance being billed incorrectly.  I had to ask multiple times for my insurance to be updated and then I started getting collection calls.  Someone once told me to avoid paying the collection agency and pay the party who is doing the billing even after it is turned over to a collection agency.  I am not sure if this actully works in all cases or not but it may be worth considering.  Best of luck, it is definitely stress that is not needed during this time!

grayeyes

Thank you, 3Cbrca and sherbab, for your feedback.  I hope everything eventually worked out for both of you with the bill collectors. 

It sounds like good advice to pay the hospital and doctor's offices directly, even after the bills are given to collectors.  I will see if that works.  In the meantime, I plan to report the collection agency to the BBB; I don't know if that will help, but at least I'll have an official record of the complaint, in case this mess ends up on my credit report.  I'm scheduled for more surgery next month, so I don't want this business with the collection agency to mess things up even further right now.

Thanks again. 

Chickadee

I have a friend who used to work in hospitals. There billing offices are fraught with mistakes and screw ups. Don't assume they are correct ever!



I've spent a part of this year getting notices from a collection agency that it turns out is just part of the hospital systems financial department. The financial people would assure me I owed nothing and they would notify collections. Collections never got notified and I get another dunning notice. I raised hell with finance and they assure me, once again that I'm paid up. In writing....I keep all the docs and emails.



I regard any bill from them with suspicion because they are wrong so often.



Hold their feet to the fire and make them justify the bills. If you can, find a way to sit face to face with the hospital finance people and make them justify everything. Not fun but its the only way to coerce them into doing their damn job correctly.

sewingnut

An insurance company can go back and take the money back BUT they should ALWAYS send you a statement reflecting what they did. If you are having trouble getting the bill straightened out contact your states  Attorney General's office. No company likes hearing from them. If it's an issue of insurance payment you can contact your states Insurance Commissioner. Trust me, companies don't like hearing from them either.  Good luck....

grayeyes

Thanks, Chickadee and sewingnut.

In my rush to pay from the FSA account before the end of the year, I accepted the word of the bill collectors.  Now I see that I should always question the bills from the collection agency.  I have no record of a notification from my insurance company that a bill was denied after it was paid.  I checked my insurance account online, and it doesn't show that a payment was taken back, either.  I will look into reporting the collectors to the attorney general's office, and if the insurance company is the problem, then I'll contact the state insurance commissioner.

Thanks for your advice!