If your bill has already been sent to a collection agency
If you are being sued, you should seek legal advice.
If you have been sent to collections without being given an opportunity to apply for a discount or charity care, or in fewer than 150 days from the date of your first bill, call the hospital billing office to request that all collection activity be stopped until a determination of financial assistance is made. Ask for the name and fax number of the person you speak with and follow up by faxing the hospital right away to see if you can get financial assistance based on a completed application. Be sure to keep the fax delivery confirmation. Click here for a sample letter. If you do not have access to a fax machine, send a letter via certified mail with return receipt requested so you have proof that the hospital received your letter.
Also call the collection agency to ask them to stop all collection activity until a determination of financial assistance is made. Follow this phone call with a fax or letter sent via certified mail saying who you spoke with and what they said. Click here for a sample letter to a collection agency.
If you are uninsured or give the hospital information that you may have high medical costs, the hospital is not allowed to send you to collections or sue you within 150 days (5 months) of the first billing, even if you are not eligible for their HFPA discount.
If you are in the process of applying for a discount payment or charity care, AND you are trying in good faith to settle your bill by negotiating a reasonable payment plan or by making regular partial payments of a reasonable amount, the hospital is not allowed to send you to collections.
The hospital also may not sue you or report you to a credit agency if you are in the process of appealing denial of coverage with your health insurance company , disability insurance company , Medi-Cal, or Medicare. In this case, the hospital may not sue or report you to a credit reporting agency until a final determination is made. If a hospital does, they broke the law and you can use this to defend a lawsuit or clean up your credit report.
If you qualify for an HFPA discount, the hospital may not do any of these:
- charge interest as part of your payment plan,
- garnish your wages, except after a court hearing at which you have a chance to show you can’t pay, or
- put a lien on your home.