Expert: Regan Shinski - 2/17/2011

Question
I was recently seen in the ER and the bills came this past month. I have been calling to make payment arrangements as I have no insurance to pay this bill. The bill is for $520.The Doctors bill was $491. The doctors bill came with an enclosure to fill out and send back to see if I can get the bill reduced so I filled it out and faxed it back to them. The hospital bill was already reduced from $886 to $520. When I called to make arrangements to pay the hospital bill, the lady told me I would have to pay $45 dollars per month. I told her I could only afford $25 per month. My income is $940 per month and I have other bills to pay too. She said that I would have to bring in my tax info for 2010 for them to verify that I can't afford anymore than $25 per month. What is the law on this? SInce when does the hospital have the right to see my tax info? At least I am willing to pay it which is more than some people do. If I send them $25 per month and they take it, is it then an implied contract of sorts? It's either $25 or nothing at this point in time.

Answer
Hi Rick:

The law varies by state.  For example, California has some of the more patient friendly rights.  You should complete basic internet searches for hospital bills and your state.  Most do not specifically address this or have laws such as California's to give patients extra options.  For this reason, the default is back to basic contract law.  Somewhere in the hospital paperwork, you signed an agreement.  Most likely, the agreement was payment was due when services are rendered but that is not a given.  You should look through them to make sure.  Often the contracts themselves will address the state laws.

They do not have a "right" (as you put it) to see your tax information.  It sounds like they are trying to work with you and are requiring documentation to enter into an agreement.  How is this different that you - say - buying a car?  You have to provide records in that case.  If anything, they have already been more lenient with you since they already paid for the services before getting payment or records from you.  So it sounds like your frustration may be a little misplaced.  I don't think they are asking for anything unusual.

Sending $25 may or may not satisfy them but even if they take it don't think that you have entered into a formal contract.  They could pull the plug at any point.

It really is just a matter of negotiation at this point.  If $25 is what you can pay, hold to it.  They will probably take it, especially if your tax statements support your claims.

Good luck.  I'm sorry, I wish I had better options for you.

Regan

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