Anesthesiologist Demanding Payment In Full after only 4-months

[Falcon540]

I am in Virginia and I have a medical billing legal question I hope you can help me with. In May and June of this year (2019) I had Cataract Surgery on both eyes. In July I received my first billing statement from North American Partners in Anesthesia (NAPA) of Virginia. The statement showed what my insurance paid and the balance due from me of $508.00. I continued receiving monthly statements from them through October and I made payments of $40.00 each month towards my balance.
I did not receive a statement from them for November. Instead I received a notice from a collection agency called Nationwide Recovery Service demanding payment in full within 30 days; which will be on or around Christmas Day (12/25/2019).
Can they legally do this? It has been my understanding that healthcare providers cannot forward your debt to a collection agency, notify credit reporting agencies or take any legal action as long as you make some form of payment each month. All the other doctors and facilities involved are content with my monthly payments.
I am on a fixed income from Social Security Retirement/Disability and I can’t afford to pay this all off in one lump sum. What options do I have?
Thank You

 

[PayrollHRGuy]

Of course, they can demand full payment because you owed them $508.00 the day they sent the bill to you.

It has been my understanding that healthcare providers cannot forward your debt to a collection agency, notify credit reporting agencies or take any legal action as long as you make some form of payment each month

Your understanding is incorrect.

 

[Zigner]

Did you call them and make payment arrangements, or did you just send in partial payments?

 

[adjusterjack]

What options do I have?

At this point you call the collection agency and see if they will accept a payment arrangement. If yes, get it in writing.

 

[Falcon540]

Of course, they can demand full payment because you owed them $508.00 the day they sent the bill to you.



Your understanding is incorrect.

PayrollHRGuy
Your response seems a bit abrupt. My understanding my be incorrect but that's why I asked the question. Healthcare is not like buying merchandise, it is more of a necessity and, in many cases, an undesired one. But, as a necessity, there have been many new laws introduced to protect consumers from unscrupulous healthcare practices; with new laws being introduced every year. One example that comes to mind are the steps being taken to protect consumers from surprise bills from healthcare providers. So yes, I understood how much I owed them but, to expect immediate payment in full seems to be, at the very least, unethical. I have had several health issues over the past 2 years and all of my healthcare providers are content with monthly payments, all except this one. Your response make me wonder if you work for an organization like this.

 

[Falcon540]

Did you call them and make payment arrangements, or did you just send in partial payments?

Zigner - Thanks for the response. I did not contact them until I received a notice from the collection agency. The supervisor I spoke with said that "even if I had contacted them beforehand, they would have just told me to apply for financial assistance and still expected payment in full". I make monthly payments on so many medical bills that I did not see this coming.

 

[Falcon540]

At this point you call the collection agency and see if they will accept a payment arrangement. If yes, get it in writing.

adjusterjack - Thanks for the reply. I have contacted the collection agency and they are willing to setup a payment plan but, if the balance is not paid in full by January 5, 2020 they will report my account as delinquent to the credit reporting agencies. They added that once my account is paid in full, they would pull that report back from the credit reporting agency. Does this sound accurate? Thanks for your advice.

 

[quincy]

The negative account information generally will remain on your credit reports for 7 years.

 

[PayrollHRGuy]

Your understanding is incorrect.

PayrollHRGuy
Your response seems a bit abrupt. My understanding my be incorrect but that's why I asked the question. Healthcare is not like buying merchandise, it is more of a necessity and, in many cases, an undesired one. But, as a necessity, there have been many new laws introduced to protect consumers from unscrupulous healthcare practices; with new laws being introduced every year. One example that comes to mind are the steps being taken to protect consumers from surprise bills from healthcare providers. So yes, I understood how much I owed them but, to expect immediate payment in full seems to be, at the very least, unethical. I have had several health issues over the past 2 years and all of my healthcare providers are content with monthly payments, all except this one. Your response make me wonder if you work for an organization like this.

First, let's make it clear I don't work here. I volunteer just like everyone that answers questions on this site.

The Dr. provided a service for you. He charged you a reasonable rate. You should have had every opportunity beforehand to have a pretty good idea of what the service would cost.

There is nothing unethical about a Dr. wanting to be paid for his or her services in a timely manner. Had you not been able to pay it all at the time of service it would have been wise to either work out a payment plan or get a medical loan.

 

[not2cleverRed]

Zigner - Thanks for the response. I did not contact them until I received a notice from the collection agency. The supervisor I spoke with said that "even if I had contacted them beforehand, they would have just told me to apply for financial assistance and still expected payment in full". I make monthly payments on so many medical bills that I did not see this coming.

This is why you should have discussed them beforehand about your situation. It is possible that you could have qualified for financial assistance; at the very least, you would not have been blind sided. It is very likely that you signed paperwork agreeing/committing to pay your portion of the bill in full. Perhaps they do things differently in Virginia, but I know when I took my neighbor in for her cataract surgeries there was a lot of paperwork. Did you read before signing?

It is possible that your other creditors are NOT "content" with your monthly payments - they perhaps are just resigned to the situation.

 

[Zigner]

I am not in the medical field, but my company operates almost exclusively with credit terms (vs. payment in full upon receipt of goods). I can tell you that I am much more understanding of a customer who communicates problems with me up front, as opposed to just dribbling money my way.