Caudle explains the scam and what happened to him:
You go to the hospital and are treated for whatever. Maybe spend a night or just a brief visit to the emergency room. After the wait and treatment, you're cut loose from the chute and finally get home. You'll get a bill in a few weeks saying, "This is not a bill."
Then the statement tells you that you owe an obscene amount of money because, after all, you're paying your bill plus everyone else in the emergency room who couldn't pay their bill. But never fear, the hospital has submitted your bill to your insurance.
The statement then says you'll be billed for whatever your insurance doesn't pay.
That next statement, however, never comes.
Then the statement tells you that you owe an obscene amount of money because, after all, you're paying your bill plus everyone else in the emergency room who couldn't pay their bill. But never fear, the hospital has submitted your bill to your insurance.
The statement then says you'll be billed for whatever your insurance doesn't pay.
That next statement, however, never comes.
Instead, in about six months, your insurance company finally pays the hospital, and the hospital turns your remaining balance over to a collection agency -- without the courtesy of sending you a statement for the remainder of your bill.
So the first thing you know about any kind of amount you owe the hospital is via a collection agency threatening to take you to court if you don't respond to them in 30 days.
I learned a lesson about being too quick to pay a hospital bill a few years back.
A hospital had gone the collection route without a final bill. I disputed it.
Finally, I got tired of the phone calls and paid the $800 out of my own pocket, figuring I could recoup it from my insurance company when they finally paid up.
The problem? At the same time I was paying the hospital, the insurance check was in the mail.
The company that owned the hospital sold it, declared bankruptcy and -- as you can imagine -- my $800 claim against the bankrupt bunch was never so much as a blip on the radar screen of the crediitors they owed.
Just remember this. A collection agency can't collect on a bill that's never been sent to you. And you can pay the hospital $5 a month for the rest of your life. As long as you're making payments, there's nothing they can do but accept the money.
I had a similar experience with my last health plan and received at least 20 or more envelopes with “This is not a bill” across the top. My insurance shockingly didn’t fully pay for the doctor visits, blood work and x-rays. Have you experienced this with your insurer?
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