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I Have Medical Insurance But I Was Sent to Collections

Arnett & Arnett, PC Aug. 1, 2023

Every year, many Americans are put into financial hardship due to medical emergencies and accumulated medical debts. You hope for your health insurance coverage to help pay for part of your medical treatments and protect you from unforeseen, costly medical bills. However, your medical insurance won’t pay for everything, and you’re still required to pay for some of your medical expenses. If you fail to make payments as of when due, your medical debts may be sent to collections.  

At Arnett & Arnett, PC, we’re poised and ready to advise and guide clients in complex legal matters involving medical debts and collections. Our seasoned Arizona health insurance attorneys can review your insurance policy, enlighten you about what is covered, and outline an effective plan to repay your outstanding medical bills. We’re proud to serve clients across Chandler, Flagstaff, Phoenix, Tucson, and surrounding areas throughout Arizona. 

Medical Bills and Your Obligations

Medical insurance helps cover the cost of your hospital visits, doctor’s appointments and consultations, prescription drugs, medications, wellness care, and medical devices. It also protects you from having to bear the cost of unforeseen, expensive medical bills all alone. Generally, what is covered by your health insurance policy is often indicated in the policy’s terms.  

However, the health insurance policy will probably not cover all your medical needs. Policyholders are expected to pay any amount not covered by medical insurance. Before you receive a bill from the medical provider, you will get an Explanation of Benefits (EOB) – outlining how your insurance claims were processed.  

Also, the EOB will indicate deductibles, coinsurance amounts, and other denied medical services. Therefore, you need to review your insurance policy’s terms, understand your EOB, and evaluate other vital documents. By doing this, you can know your out-of-pocket costs and ensure that you pay your medical expenses before they’re forwarded to collections. 

Steps to Take Before Paying Your Medical Bill

Sometimes, medical bills are not always accurate. You need to crosscheck thoroughly to detect errors before making any payment. Here are some vital steps to take before you pay your medical bills:  

  • Review your insurance information to ensure that your provider processed it.  

  • Crosscheck the medical expenses to ensure your bills are accurate.  

  • Verify the amount by comparing it with the Explanation of Benefits (EOB).  

  • Request for a statement of the medical bills. Only pay for medical services and treatments you receive.  

  • Check the codes on your medical bills. Ensure that you’re only billed for medical treatments and services you received.  

  • If the medical expenses are high, reach out to your medical provider to negotiate a reduced payment.  

  • Dispute any errors and settle your medical bills as soon as possible.  

A trusted attorney can walk you through dispute errors in your medical report and take the necessary steps to settle your outstanding medical bills. 

Disputing a Medical Bill

Here are some steps to dispute a medical bill if there are errors:  

  • Request for a list of all the medical services and treatments you received, including the cost of each one.  

  • Reach out to your medical provider for additional explanations regarding the charges.  

  • Speak with your insurance career to know what the health policy covers.  

  • Collect and document evidence, including your hospital bills and medical record.  

  • Hire a knowledgeable lawyer to help dispute your medical bill.  

A seasoned consumer rights attorney can advocate for your rights, help dispute your medical bill, or negotiate a reasonable payment solution with your medical provider. 

How it Could Affect Your Credit

Generally, medical providers often turn over outstanding medical debts to collection agencies. The collection agency that purchases the medical debts reports the debt to credit bureaus – TransUnion, Equifax, or Experian. As a result, unpaid medical debts will appear on your credit report and might affect your rating by about 100 points. When you repay the debt, it will be updated but not eliminated from your credit report. 

Don’t Face Financial Challenges Alone 

Failure to pay your outstanding medical debts may prompt your healthcare provider to forward the bills to collections. Unfortunately, this might affect your credit rating and eligibility for future loans. At Arnett & Arnett, PC, we provide experienced legal guidance to clients in medical debt-related matters.  

Our dedicated attorneys can review your insurance policy, evaluate your unpaid medical debts, and discover your legal options. In addition, we will crosscheck your medical bills, identity and dispute errors, and help negotiate a reduced payment. Above all, our reliable team will outline a strategy to clear your medical debts and ensure that it doesn’t affect your credit ratings.  

Contact us at Arnett & Arnett, PC today to arrange a simple consultation with an experienced health insurance attorney. Our dedicated team has the personalized legal counsel and brilliant advocacy you need to make informed decisions. We’re proud to serve clients across Chandler, Flagstaff, Phoenix, Tucson, and surrounding areas throughout Arizona.