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Hospital sent me to Collections

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Junior Member
Ok, here is the situation; In January my daughter was born. In late February, we recieved her Social security number and added her to our insurance policy (PPO). A couple of weeks later we get notification from the insurance company that claims made to her pediatrician were being denied. I called the insurance company and found out that an error was made when she was added to my insurance, her start date and cancellation date were listed as the same day (her birthday).
The pediatrician's office let me know that the claims were being denied, and I informed them that the matter had been rectified. They were then able to sucessfully bill the insurance company. I thought that was the end of it until...
Yesterday we recieved in the mail, notification that the hospital that delivered our daughter has turned us over to a collections agency for non-payment. While we have recieved notices from the hospital, indicating that claims have been filed with our provider, we have recieved no notice that they have not been able to collect that money ($500). The hospital made no attempt to bill us for the amount. This was a total shock, since they have billed me in the past for medical expenses not covered, and I have paid them.
What I want to know is, what are my alternatives here? This cost would be covered if the hospital would resubmit the claim. But since this has been turned over to collections, I am not sure if that is even possible. Aside from not wanting to pay for something due to someone else's lack of effort, I don't want this on my credit report. What should I do?


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