Expert: Michael Brotherton - 7/24/2007

Question
My son who was over the age of 18 at the time of an emergency visit to a local county hospital (taken involuntarily and against his will, and was not covered by insurance). The incident occurred May of 2004 and he received a large bill from the hospital,the doctors and lab, during the summer of 2004 (while he was preparing to go out of state to college).  He worked very hard just to get into college and was able to attend with the assistance of some hard earned scholarship money and school loans. When he responded to the hospital billing office with the inability to pay the large bills, he was asked immediately to 'commit' to a payment amount that he could not promise to at that time due to the fact that he had not been employed, and his very financial situation was very tight just trying get to college.  We, as his parents were very overextended as well, trying to help him with his goal of getting an education.  He then told the billing office that he may be able to 'commit' to some amount or possibly pay a good portion of the debt when he returns home the following summer, pending obtaining a summer job. He also inquired about negotiating a balance amount since he was not covered by insurance.  They told him to check out social service. He spent countless hours on the phone and in office lines before he left for school, to no avail. (He falls through the cracks and qualifies for no help). He left for school with no resolution.   When he returned home the following summer, he not only traveled home sick, (not knowing that his appendix had burst, and sending him to the hospital [a different one] for awhile), he soon discovered that his previous hospital and doctor bills had been sent to collection. After a long cooperation period from his appendix surgery, he tried to obtain a job for a couple of weeks before returning to school, however, was not too successful, as no one seemed to be hiring for a few week interval.  He also called and visited one of the two collection agencies in charge of his bills.  They were not negotiable in the least, blaming that they have no control over the amount and that it is up to the hospital/doctor to change.  When he contacted the hospital and doctor's offices they would pass the buck back to the credit agencies! He soon ran out of time and put this on the back burner to get back to school.  He carries a heavy load studying engineering while participating in football and has had no time to even secure a part time job, while trying to keep his grades up to par. While he has been gone, we receive continual recorded messages at our home from the collection agencies.  One phone call that I happen to have answered, was a live person who I tried to explain the situation on behalf of my son, yet he responded like a high pressured salesperson trying to cut an overpriced deal of repayment. I have since done some research and it seems as if maybe the hospital should have offered a negotiated amount since my son was not covered by insurance and unemployed. I know that they accept lesser fees for 'usual and customary charges' for insurance purposes.  I also have read that it is customary for hospitals to offer help from a financial counselor or a charities fund, etc., none of which was offered to my son by this hospital's billing office. At this time the uncollected bills remain on his credit report.  We are wondering what his next course of action should be. How long will a bad medical debt remain on a credit report.  We live in California.


Answer
There are resources available through the hospital but it may be too late to qualify. All public hospitals have indigent programs which may allow them to waive or reduce your balance. Call patient accounts and ask them about it. If they are uncooperative or turn you down your best bet is to renegotiate payment arrangements or a lump sum settlement which could save you 50% if paid all at once.

This is not your debt. They broke the law when they spoke to you about his bill. Your son may file a complaint with the Federal Trade Commission or State Attorney General. This may put pressure on the collection agency to cooperate with your son or eliminate the debt altogether.

Your son needs to be involved in all this. I know he is busy but he needs to know how to deal with these things. My advice is offer your help but let him communicate with his own creditors. This is very important so he can grow from it. I can tell you love your son and only want to help but he is an adult and needs to go through this himself. God bless and tell him I said Hi.