When you find yourself in the hospital, the last thing you should have to deal with is a bill collector. Unfortunately, such is the case with many patients at hospitals across the country. This article explains how debt collection practices have seeped into medical care, what you should watch for, and what is being done about it. (Learn more about illegal debt collection practices.)
If you are uninsured or owe prior medical debts, you may be exposed to aggressive debt collection tactics by the same hospital that is supposed to be treating you. Rising complaints from hospital patients reveal a pattern of abusive practices by medical debt collectors who:
disguise or hold themselves out as hospital employees
demand that patients pay outstanding medical bills before they can receive medical treatment
discourage patients from going to the emergency room, and
These types of practices are troublesome because they potentially violate not only federal and state debt collection laws, but also patient privacy rules under the federal Health Information Portability and Accountability Act (HIPAA). For more information on HIPAA's privacy rules, go to the HIPAA website established by the federal Department of Health and Human Services.
Hospitals frequently turn over their unpaid medical accounts to third party bill collectors. They often allow those debt collectors to take part in patient medical intake procedures. Once embedded, they will attempt to extract money from the ill or injured patient, sometimes even pressuring the patient to hand over a credit card or make a payment up front. This practice is commonly called “back office debt collection.”
When a hospital debt collector becomes too aggressively involved in your medical intake or admission to a hospital, your rights under the Federal Fair Debt Collection Practices Act may be violated. Under the FDCPA, a communication from a debt collector must meaningfully disclose the identity of the debt collector and provide what is called a “mini-Miranda” warning. At a minimum, when a hospital debt collector communicates with you, he or she must:
The debt collector may have violated the FDCPA if he or she:
Under the FDCPA, you also have the right to written validation or verification of the medical debt before a debt collector may continue to contact you. If a medical debt collector essentially puts you on the spot at the hospital, especially during a medical emergency, it may have unlawfully circumvented this verification obligation to you.
If the hospital debt collector is an employee of the hospital and the medical debt that you owe belongs to that hospital, then there might not be a violation of the FDCPA. That is because the FDCPA only applies to third party debt collectors, not the creditors themselves. However, the hospital may have violated the debt collection laws of your state, especially if those laws extend to creditors.
The Affordable Care Act has some regulations to curb these emergency room bill collection practices, at least by those in hospitals providing charitable medical care. Under the Act, hospital organizations are required to meet four general requirements on a facility-by-facility basis:
For more information, please read the IRS publication on Requirements for 501(c)(3) Hospitals Under the Affordable Care Act.