Bankruptcy and collection issues

[janda00]

What is the name of your state? TN, issue from SD-

In Jan. 2001, my wife used our health insurance to purchase diabetic supplies from a home medical store through a local hospital. The claim wasn't filed with insurance until February. The company I was working for, and had the insurance through, filed for bankruptcy in August 2000 and closed its doors Feb 1, 2001. According to the insurance company, the policy was self-funding, and payments could not be made on any claims after Jan 31st. The bankruptcy hearing is still going on, and I have filed a petition with the court for payment of the supplies. The problem is this- we have been notified via mail today that the balance for those services of $1300+ has been turned over to collection. Where does fault lie within this? Is it the medical center's fault for not filing the claim in a timely manner? Is it the insurance company dodging payment, claiming the cut-off date as an excuse (date of service rather than date of filing)? Are we liable for this payment while it is in bankruptcy hearings? Please advise as soon as possible.

Thank you for the help,

[seniorjudge]

Originally Posted by janda00

What is the name of your state? TN, issue from SD-

In Jan. 2001, my wife used our health insurance to purchase diabetic supplies from a home medical store through a local hospital. The claim wasn't filed with insurance until February. The company I was working for, and had the insurance through, filed for bankruptcy in August 2000 and closed its doors Feb 1, 2001. According to the insurance company, the policy was self-funding, and payments could not be made on any claims after Jan 31st. The bankruptcy hearing is still going on, and I have filed a petition with the court for payment of the supplies. The problem is this- we have been notified via mail today that the balance for those services of $1300+ has been turned over to collection. Where does fault lie within this? Is it the medical center's fault for not filing the claim in a timely manner? Is it the insurance company dodging payment, claiming the cut-off date as an excuse (date of service rather than date of filing)? Are we liable for this payment while it is in bankruptcy hearings? Please advise as soon as possible.

Thank you for the help,

Q: Are we liable for this payment while it is in bankruptcy hearings?

A: Yes. The folks you got the stuff from are not involved in this drama. They just want their money for the stuff you bought from them.

[Ladynred]

If the claim was filed within a month, that is hardly considered untimely filing on the part of the insurance company or the providers. The fact is, filing insurance claims for the insured is a COURTESY, you are still responsible for payment.

I would suggest you make the payment, and continue to get your claim paid thru the bankruptcy proceedings.