[kfamily08]

In Greene County, Tennessee, what is the maximum fees allowed by law, when a hospital bill is deemed late? What is the law regarding how long must a hospital wait before turning account over to collections?

[JudyKayTee]

What do you mean by fees if a bill is unpaid?

A bill can be turned over to collection immediately after it becomes past due. Most creditors don't do this but it is legal.

[kfamily08]

We have been making payments on bill for over 6 months, immediately following payment from health insurance. They sent us to collections over balance, because they felt we were not paying enough. Then added 20% to total before sending!

[JudyKayTee]

I am reading this as the hospital is charging you an extra 20%, not the collection agency.

Am I correct?

It is not unusual for interest to be charged by the hospital and the collection agency asks for interest and fees - 20% seems like a high penalty for the hospital to charge.

[kfamily08]

Yes, it is the hospital, not the crediting agency. They confirmed that "in cases like these, 20% is standard" I am not sure what they meant by that, but as I said, we were making regular monthly payments, and had not missed any. We were not even notified that they were sending it to collections, we just got a letter form the collection agency giving us 30 days to respond or we would be sued for balance!

[ScottGem]

First there is no laws governing when the hospital can send a bill to collections. Nor is 20% to high for interest.

How much was the bill and how much were you paying monthly. Did they agree, in writing to accept that amount?

[kfamily08]

The final bill, after being double-billed originally and corrected through insurance, was $1123.00. We were paying $25.00/month. They said they could not contract for anything less than 25% of bill/month, but that as long as they received a payment every month, they would consider account active and not delinquent. Unfortunately that converstaion was via a telephone call, not in writing. Since this event, we have learned that they are doing this to EVERY account 90 days past service date, and are suing all! No matter that our unemployment rate shot to nearly 40% over the past 6 months, due to 3 major corporations shutting their doors! I just think this is wrong, especially with today's economy, its not like we were ignoring it altogether, we have been paying what we can.

[ScottGem]

Unfortunately, $25/month on an $1100 bill barely maintains the interest. While 25% seems excessive, $25 is not reasonable.

I know that's what you feel you can afford, but I can understand them putting it into collections.

[kfamily08]

There was no interest on this, as it is a medical bill. The original bills state that no interest is collected. I am frustrated over the fact that they do not take anything into account when doing this. We have also unfortunately fell into the "downsize" of the nation. This was not some run-of-the-mill check-up, this was emrgency treatment for a brain aneurism!! We have supplied monthly income proofs, family size, etc. And they told us to sell our home!!

[ScottGem]

I totally agree with you that this is insensitive, shortsighted mean and scroogelike. But its not illegal.

Is this a private hospital or a publicly run institution? Either way, my best suggestion is to contact a consumer advocate in your local media. They love to expose scrooges.

[JudyKayTee]

There was no interest on this, as it is a medical bill. The original bills state that no interest is collected. I am frustrated over the fact that they do not take anything into account when doing this. We have also unfortunately fell into the "downsize" of the nation. This was not some run-of-the-mill check-up, this was emrgency treatment for a brain aneurism!!!! We have supplied monthly income proofs, family size, etc. And they told us to sell our home!!!

Unfortunately - and I had a very ill, now deceased husband and now all about unforeseen medical bills - you owe the money and the hospital has every right to collect in any way that is legal.

If you believe this is unconscionable, then wait until you are sued, go to Court and make that argument referring to State laws and Statutes.

And, yes, people DO have to sell their homes to pay medical bills due to the economy right now.

I am not unsympathic, not at all - but I spend a lot of money, a lot of otherwise disposable income, on health insurance (comprehensive, expensive health insurance) so that I do not fall into this position, as do a lot of other people. It is simply unfair that other people do not have adquate insurance and, therefore, do not have to pay their medical bills.