Medicare, Medicaid, Life and Health Insurance/Unpaid medical bills


My sons friend incurred a huge debt after being in an automobile accident as a passenger in July of 2011. Being young and overwhelmed she did not attempt to pay them at the time. Now being older and wanting to settle her debt she is once again overwhelmed by the amount owed. Her outstanding debt is over 13,000 and obviously has been in collections. Do you have any advice for us in moving forward with this? I've read that hospitals will work with you but because of the length of time I'm not sure how to go about it.also, have read that you have to be careful about the statute of limitations for using courts to collect debts. She is a resident of New Jersey. i really appreciate any guidance  in this matter.

Hi Karen!

Once a debt is with a collection agency you need to negotiate with them and not the hospital usually but some hospitals may still be willing to negotiate even after an account goes to an outside collection agency.

First she needs to make sure it has not gone legal yet...........once an attorney gets involved than it makes it harder to negotiate a lesser amount.  Many collection agencies send accounts to "legal" if not paid within so many years.  She would have received an attorney letter if they plan to sue her.

If account is still at a collections agency then I would suggest first calling the hospital to see if they are willing to work with her.  Going rate is usually 50% reduction for an account within 5 years old.........even with that the amount due is huge.  

They may allow her to make payments but with even a $6500 balance they would require a lot each month with usually a large down payment. If she is willing to pay on a credit card they sometimes will reduce way down just to get rid of the debt.   

I would also tell her to check out Charity Care in NJ.........for people with small incomes and a lot of medical bills.  Unsure since bills are so old if they would consider them but most of the time they will pay them in full.  Worth a shot.

Good Luck!

Medicare, Medicaid, Life and Health Insurance

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Has your medical insurance company denied your claim and refuses to pay? Have you received a pre-authorization and still your insurance company refuses to pay? How can you get your insurance company to reverse a denied claim? How do you get a provider to waive your copayment if you are financially unable to pay? Can a provider sue you for a unpaid bill and will they? Can a provider send me to a collection agency for a medical bill? If my insurance company does not pay, am I responsible? If you have these questions or others on why your insurance company is not paying your bills, I can help. I can give you "tricks of the trade" to get your insurance company to pay. I have limited knowledge on Medicare and Medicaid and that is not my expertise. Each state is very different regarding Medicare and Medicaid so you need to review their website when you have questions. So please no Medicare or Medicaid questions!!


In the medical field for over 20 years spending majority of time in the collections aspect.

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