Limitations on Medicals Bills incurred in California by a Canadian resident

[doubrown]

My mother was hospitalized in California while on vacation in April of 2007. Throughout the hospitalization, she was under the impression that the expenses were covered by insurance. The total amount of the medical bills incurred in California was about $330K. She was transferred back to Canada and was hospitalized for another three months before passing away in August of 2007. As Executor of her estate, I was notified in October of 2007 that the insurance company would not cover the bills. I immediately filed an appeal with the insurance company and was notified in July of 2008 that the appeal was denied. No bills have been sent to my mother's former address or my own. I am only aware of the amounts through copies of the bills sent to me by the insurer. To my knowledge, no attempts have been made to collect on these medical bills.

What is the statute of limitations on these bills? My understanding is that SOL on written breach of contract is 4 years. When does the clock start ticking: the date she was admitted to the hospital, the date she was discharged, the date she passed away, the date the insurer denied coverage or the date the appeal was denied?

Does the fact that my mother was not a US resident have any bearing? Does California statute of limitiations apply or would the Canadian rules apply? Thus far, I have been waiting for the medical service providers to make the first move in terms of collection.

[ecmst12]

The SOL is of the LEAST significance in this case. Was there an estate? Her estate would owe the debt, and I believe there is a limited amount of time that they have to make a claim against the estate. However, the rules for probate may be different in Canada (and I don't even really know them that well for the US!) So that's the limitation that would be important in this case. YOU would not be responsible for the bills unless you signed papers agreeing to it for the hospital. There is no reason for you to hide your head in the sand and wait for the hospital to make the first move. You should contact them and see how they intend to proceed. If there WAS no estate, then the hospital would likely have no recourse for the bills; they wouldn't transfer to you unless perhaps she was your legal dependent at the time the bills were incurred. Do you live in the US or in Canada?

[doubrown]

I live in Canada.

There was an estate. At the time I applied for and was granted probate, I did not list the medical bills as a debt owed by the estate as 1) At that point in time, I thought the bills were covered by insurance, 2) I had no idea as to the amounts other than expecting them to be large. I discharged the estate before knowing that the bills weren't being covered by insurance.

My mother signed the admission documents when she first entered hospital. She had contacted the insurance company before admission and was directed to that particular hospital. She was discharged 6 days later. A few hours after discharge, she suffered a stroke at the airport and was transferred by ambulance to the nearest hospital. I flew down that evening and did sign some additional admission documents as next of kin as she was incapable of doing so.

So am I in trouble for not disclosing the debts when I applied for probate? Again, I have never been contacted by the service provider and all I have to go on are copies of bills provided by the insurance company. Is it reasonable to assume that the SOL for claims against estates is what matters?

[ecmst12]

If there was no estate, it may not matter whether the debts were listed or not. I don't think you're "in trouble" since you didn't INTENTIONALLY exclude the debts. But you should talk to a probate atty where the estate was handled for further advice (I'm assuming this was done in canada)