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Old 07-02-2018, 08:00 PM
 
171 posts, read 169,046 times
Reputation: 84

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I have another thread here about a 1 1/2 year old bill from a hospital for about $600. After 2 different collection agencies, this one is finally talking about 'intending to sent this to an attorney for small claims court'. While I'd love my day in court, I haven't found anyone that can / can't say I have a chance based on my arguments.

So then the question - has anyone had experience negotiating on a hospital bill thats 1 1/2 years old and with the 2nd collection agency?

One consolation I kinda forgot, but my son reminded me - the hospital won't get all of the money, the collection agency will get some. That made me feel better

Anyone know the cut the collection agency typically get? is it based on what % of the total dollars due they collect? I'd like to maximize their take vs. the hospital while minimizing how much I pay

After this long will they settle for 10c on the dollar? On a $600 bill, that's $60 and even I realize that's not likely.

Wonder if anyone has been in this situation and can comment on what they paid out as a percent of the original bill
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Old 07-02-2018, 08:06 PM
 
Location: Georgia, USA
37,029 posts, read 41,087,048 times
Reputation: 44970
Did you receive services that you did not pay for when they were rendered?

If so, just pay what you owe.
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Old 07-02-2018, 10:25 PM
 
Location: Wisconsin
19,480 posts, read 25,052,822 times
Reputation: 51113
Well, my SIL was billed $750,000 in co-pays (after her insurance paid the rest of the hospital bill) and the hospital settled for $200,000. Even though she died several years later her husband is still making regular monthly payments towards the remainder of the bill.

Frankly, I say pay the darn $600 bill, even if you make arrangements to pay a few dollars every month.
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Old 07-02-2018, 10:39 PM
 
Location: Tricity, PL
61,428 posts, read 86,506,480 times
Reputation: 131269
First step of successful negotiation would be requesting DETAILED bill, a list of all items they are charging for. Then you should go over it and carefully check each of them for duplicates and possible charges for service you never received. It will skim the bill down a big time.
Of course, now after a year and a half it is a bit hard to remember what was done and what not, but worth trying anyway.
My son had a <24 hrs stay at a hospital that came to $34K, but after a careful review and elimination of stuff that was never done/duplicate charges etc. the bill came down to... $3,700.
Hospitals notoriously make "mistakes" on their bills. Most people don't care, or even see the charges, because the bills are sent directly to insurance. Others just take them for granted. Overbilling is a part of the healthcare problem...
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Old 07-03-2018, 05:29 AM
 
2,413 posts, read 2,640,647 times
Reputation: 4780
If it’s with a 2nd collection agency the damage is done. All that for $600? Your credit rating will take a hit and whatever you do not give them any bank information, they will drain your account.
If they go to small claims you’ll pay even more. Settle it, lick your wounds and move on.
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Old 07-03-2018, 05:36 AM
 
23,563 posts, read 70,158,065 times
Reputation: 49102
The other thread details the dispute. The detailed bill was obtained, so the previous post is irrelevant to the OP. As the OP has come around to recognizing he has no legal leverage and owes the money, about all he can do is offer a cash amount in lieu of a longer payment plan. If the bill is in outside collections the hospital already has what money it is going to get. His fantasy of paying only a small percentage is unrealistic. The agency will laugh at a lowball offer and get a judgment for the entire amount (and possibly court and legal costs). On $600 he might negotiate off $100-$200 if he doesn't tick them off. If he doesn't resolve this soon, it is not going to end well for him.
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Old 07-03-2018, 05:55 AM
 
21,108 posts, read 13,488,929 times
Reputation: 19722
Quote:
Originally Posted by InvestorWithQuestions View Post
I have another thread here about a 1 1/2 year old bill from a hospital for about $600. After 2 different collection agencies, this one is finally talking about 'intending to sent this to an attorney for small claims court'. While I'd love my day in court, I haven't found anyone that can / can't say I have a chance based on my arguments.

So then the question - has anyone had experience negotiating on a hospital bill thats 1 1/2 years old and with the 2nd collection agency?

One consolation I kinda forgot, but my son reminded me - the hospital won't get all of the money, the collection agency will get some. That made me feel better

Anyone know the cut the collection agency typically get? is it based on what % of the total dollars due they collect? I'd like to maximize their take vs. the hospital while minimizing how much I pay

After this long will they settle for 10c on the dollar? On a $600 bill, that's $60 and even I realize that's not likely.

Wonder if anyone has been in this situation and can comment on what they paid out as a percent of the original bill
Nowhere close to that.
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Old 07-03-2018, 06:10 AM
 
16,235 posts, read 25,145,170 times
Reputation: 27047
try this...

Next time they call turn this all around....put them on the hot seat......have a pen and paper handy. Be insistent....Interrupt them and say, Thanks for calling.....I have some questions for you.....I would like you to mail me the original bill, and I would like you to give me The person of contact at your agency, your agency's address and telephone numbers.

this usually stops them from future calling....because the minimum wage person calling you gets flustered and has no way of providing you that information usually.

Likewise, if you'd like to just pay this....Tell them that you have 300 dollars, and you were going to see a bankruptcy attorney to retain him....but if they would accept your 300 dollars, and remove this from your credit report you would consider that.
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Old 07-03-2018, 06:13 AM
 
4,690 posts, read 10,381,478 times
Reputation: 14882
Meanwhile, if it's to the 2nd collection agency (and for a measly $600), chances are VERY good that no effort beyond nagging letters with be used and you'll soon see a pause followed by a letters from a 3rd collection agency (with a lower payoff).



In my early life I went through this, multiples of collections for sums between one and five thousand, some medical (which NEVER showed on my credit report, the only ones that never did). Lots of nagging/threatening letters and that's it. By the time I grew up enough to think about getting my life on track, I was ~6 years out from those initial defaults and just let them fall off my credit report without ever contacting them. Actually, after 7 years those that didn't fall off, I disputed.


OP, none of the money you pay, if you pay, will go to the hospital. Collections "buys" the rights to collect from you, they pay the bottom line that the original creditor was willing to accept and then try to make a profit by nagging you into paying more than they paid. The "take you to court" is just a scare tactic, since the damage is done with the default just wait it out. There is cost associated with taking you to court, that cuts into their profits and there IS a risk on their part ~ if you should get actual, legitimate, court documents then offer to settle, or go to court and let the judge decide (won't be more).



Otherwise, the damage to credit is repairable, if there is damage. Get your credit reports and verify it's on there if you haven't already. But the bottom line is there is ZERO benefit to paying this default from a credit perspective.



Is it the most Ethical approach? Nope, but neither was the initial default. Sht happens, do what you feel is right for yourself and forget the rest. Me, I wouldn't even open those nag letter as nothing they contain will be to your benefit.
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Old 07-03-2018, 09:21 AM
 
6,607 posts, read 4,232,712 times
Reputation: 7043
Quote:
Originally Posted by Brian_M View Post
Meanwhile, if it's to the 2nd collection agency (and for a measly $600), chances are VERY good that no effort beyond nagging letters with be used and you'll soon see a pause followed by a letters from a 3rd collection agency (with a lower payoff).



In my early life I went through this, multiples of collections for sums between one and five thousand, some medical (which NEVER showed on my credit report, the only ones that never did). Lots of nagging/threatening letters and that's it. By the time I grew up enough to think about getting my life on track, I was ~6 years out from those initial defaults and just let them fall off my credit report without ever contacting them. Actually, after 7 years those that didn't fall off, I disputed.


OP, none of the money you pay, if you pay, will go to the hospital. Collections "buys" the rights to collect from you, they pay the bottom line that the original creditor was willing to accept and then try to make a profit by nagging you into paying more than they paid. The "take you to court" is just a scare tactic, since the damage is done with the default just wait it out. There is cost associated with taking you to court, that cuts into their profits and there IS a risk on their part ~ if you should get actual, legitimate, court documents then offer to settle, or go to court and let the judge decide (won't be more).



Otherwise, the damage to credit is repairable, if there is damage. Get your credit reports and verify it's on there if you haven't already. But the bottom line is there is ZERO benefit to paying this default from a credit perspective.



Is it the most Ethical approach? Nope, but neither was the initial default. Sht happens, do what you feel is right for yourself and forget the rest. Me, I wouldn't even open those nag letter as nothing they contain will be to your benefit.
I am speechless.
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