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Medical billing errors can destroy your credit
As a follow up to our previous post, I invite you to read the attached more recent article from the New York Times on how medical billing errors can create havoc with your credit score
We recommend demanding that as part of any resolution of a medical billing error, the offending biller be required to remove and correct any erroneous entries and agree in writing not to repost the erroneous bill as unpaid. Merely marking it as resolved is not enough to prevent damage.
You also have rights under the Fair Credit Reporting Act to dispute the erroneous report with the credit reporting agencies. We suggest this be done in the form of a letter which you send by fax or certified mail (be sure to keep a copy!!)
If this is only a part of your financial problems then you will need to consult with an experienced attorney.
No one should have to suffer with a diminished credit score because a medical service provider made a mistake. But ignoring this aspect is unwise.
Hopefully new laws can be passed to put the burden on the medical providers to correct erroneous reports of unpaid bills.
Medical bills and billing traps-a prime cause of financial problems
Here is another perceptive article from the New York Times about the traps people can get into when they end up in a hospital or medical facility that is out of their insurance company’s provider network .
http://well.blogs.nytimes.com/2012/04/23/the-confusion-of-hospital-pricing/
The system is completely irrational, but that doesn’t help people who find themselves trapped by high medical bills. We are still finding that medical expenses are still a major contributor to financial distress and eventual bankruptcy. We are also seeing increasingly aggressive collection efforts by hospitals. In recent cases, these have continued even after a bankruptcy filing.
If you are facing high medical bills, we recommend you start by verifying the charges and the services. In some instances, collectors are trying to collect beyond the amounts they have agreed to accept from the health insurance carrier. You can start by using the appeal process through your health insurance.
You have the right to dispute a medical bill, if you think there is a basis. But too often, people throw out or ignor the Explanation of Benefits or “EOB” issued by the health insurance carrier. You need to keep all medical bills and related papers.
Even if the process does not end entirely in your favor, consider efforts to settle for a reduced amount.
Of course, before agreeing to pay anything, you need to prepare a personal budget to compare your monthly net income to the total you need to spend to meet basic living expenses. There are budget forms on the the Forms page of our website. Don’t get yourself in over your head by promising more than you can pay.
If the bills are substantial, you may benefit from a free consultation to examine the options available to you.
Avoiding mortgage and debt relief scams
This little article in the New York Times caught my eye. It points out how some desparate homeowners are being scammed by companies claiming to be able to help with mortgage relief.
http://www.nytimes.com/2012/04/22/realestate/mortgages-avoiding-mortgage-relief-scams.html?_r=1
There is a lot of hype about mortgage relief. And there is a cottage industry of companies that promise to reduce your debts through negotiation (these are called “Debt Relief” agencies). The consistent thread I see is that it is hard to predict who gets what results from lenders and when. But here are some things to remember:
1. No lender is required to modify any mortgage or other loan. It is a contract. If the lender is going to give you something, they are going to want something of value in return.
2. Reputable professionals do not make promises of specific results when it comes to loan modifications. They can give you opinions on possible or likely outcomes.
3. A licensed attorney in your state may require an up front deposit, but you are entitled to have a clear written explanation of what fees are going to be based on.
4. A loan modification may be the right move for you, or it may not. You need to explore all the alternatives.
5. Finding the right professional for you requires some research. Stay with recognized professionals with whom you feel comfortable.