Re: Old Med bills on credit report

Posted by Lee (12.246.185.162) on June 29, 2003 at 12:31:40:

In Reply to: Re: Old Med bills on credit report posted by MedicalBills on June 26, 2003 at 18:45:27:

Call your insurer immediately. If you had an HMO plan, it is illegal for a contracted provider or its agents to sue you. (California Health & Safety Code 1379, with penalties defined in section 1390 - $10,000 fine and possible incarceration.) A "contract" does not have to be reduced to writing, because it can also be a course of conduct between a provider and insurer - like a business practice of requesting authorizations and accepting payments directly from the insurer.

Someone brought a case to me a few days ago where a radiologist's practice was paid for a 1999 claim, approximately $550. The practice did not record the payment and turned it over to collections. The collection agency sued the patient several months age for about $1000, interest and costs added. Get this - not filed in small claims, but as limited civil so their attorney could be involved. The patient stupidly ignored the suit, so it did not even go to a trial. If California, the court clerk can issue summary judgement if you do not respond to a civil suit. When faced with a judgement, then he came running to us. I could have sent a Cease & Desist under 1379/1390 earlier, but now I have to get the other side to request a vacated judgement - or else we report the violation to the proper authorities.

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