Hospital bills for deceased parent

[dehkin]

What is the name of your state? PA

My father past away this past July. There was an insurance policy that was paid out to myself and my two sisters.
A few months after the policy was paid out, the hospital started sending us bills. I think we are responsible for them since we did receive the insurance money, but what can the creditors do if we cannot pay them. For example, can they have a sheriff sale of our personal belongings? Im just worried that if we do not pay these bills, that someone will come and take my car. Can they do that to get their money?
Thank you very much for any advice.

 

[xylene]

Because of complex elder care laws in Pennsylvania you and your family should talk to a lawyer right away.

You filial liability does not end a death, at least not in PA.

Do not just bury your head and hope it goes away, you MUST be proactive.

 

[momm2500]

how old was your father? if over 65 he should have medicare for insurance. MAKE SURE that the insurance has paid the medical bills before you put any money out! if he had medicare and was in the hospital, medicare part A pays all but the deductible which is either $972 or $1024**************so check and make sure. life insurance policies pass outside of the estate.

 

[dehkin]

how old was your father? if over 65 he should have medicare for insurance. MAKE SURE that the insurance has paid the medical bills before you put any money out! if he had medicare and was in the hospital, medicare part A pays all but the deductible which is either $972 or $1024**************so check and make sure. life insurance policies pass outside of the estate.

He was only 44 years old. He past away very suddenly from a heart attack. His health insurance lapse the month before for reasons that I wont go into. When you say that life insurance policies pass outside of the estate, what do you mean? Thank you.

 

[anteater]

Have you asked the hospital why they are sending you the bills? If they are assuming that one of you opened a probate estate and became personal representative for the estate, that is one thing. Normally, the estate would be liable to pay the bills. If there is not enough in the estate to pay the bills, the hospital is out of luck. Life insurance proceeds paid to a beneficiary (rather than the probate estate) would not normally be avaialble for payment of claims against the estate.

However, if they contend that you and the siblings are personally liable for the bills, then say no more and find an attorney expereienced in elder law, as xylene suggested.

The reason is, as xylene mentioned, is that about half the states have laws on the books that could make adult children liable for parents' medical bills. These are referred to variously as filial responsibility, filial support, etc. Enforcement of these laws vary and Pennsylvania may be a place where the law is used aggressively.

In 2005, PA made some changes to the law - Act 43 of 2005. Here is a piece of commentary from one PA attorney:

This law potentially requires adult children who are deemed financially able to share in the huge costs of long term nursing care and the myriad of other medical services provided by the Department of Public Welfare for needy persons.

Although Act 43 has been portrayed as a mere consolidation of the Commonwealth's support laws, it is of great concern that it was passed contemporaneously with Act 42 and similarly without the opportunity for public comment. Act 42 passed into law a number of provisions which reduced access to medical assistance benefits for long term care. The Pennsylvania Bar Association formally opposed the proposed legislative amendments to the Public Welfare Code, which led to the passage of Act 42. Financing long term care is a major problem faced by our society as more and more are able to live longer. However, just as the answer should not be found by limiting the one public benefit available for helping with the costs and further burdening the middle class elderly, it also should not be found by turning to adult children who are saving for their own later years.

With this renewed emphasis on the predominantly dormant laws providing for relative support of the poor and aged, there is the strong potential that the Domestic Relations Code will become the basis for frequent claims by hospitals, nursing homes, pharmaceutical providers and miscellaneous other creditors.

You and your siblings cannot afford to ignore this.