Hospital threatening to send me to collections for not paying while my financial assistance application is still processing?

[u/air-sign-dominant]

Hi guys,

I went to an Ascension urgent care last October to get a splint put on what I had just found out was a broken wrist. I got a bill for $400 after insurance. It isn’t a lot, but I had JUST started a new job in a new city after graduation and didn’t have any money after moving, so I applied for financial aid. I got approved at the main hospital I went to for surgery, physical therapy, etc for 90% assistance. However, ascension had a separate, complicated application process that involved printing out multiple forms, compiling documentation and mailing it to them.

I sent out my application in early December. However, I kept getting “bill overdue” emails from them so I just called them to make sure it had been received and processed. They told me it had been processed Jan 10th and I could expect a decision after 60 days of that, but that they recommended I start making payments because otherwise they would send me to collections after the next billing statement (it’s the 4th one I received so far)

Is this allowed? I feel like it doesn’t make sense to make me make payments before I even know how much I will end up owing. Will they actually send me to collections so early? I had another hospital bill from 2022 that didn’t threaten collections until literally 2 years later (long story, I changed addresses and they didn’t do electronic statements)

[u/Turbulent_Summer6177]

Well, unless and until assistance is actually approved, you owe the entire bill.

I would ask if there is any way to determine what the assistance may cover and have you pay on that until the official decisions comes through?

[u/air-sign-dominant → u/Turbulent_Summer6177]

I asked about that, he just kept saying I would have to wait until the decision is made. I’m just confused because the past 2 places I’ve applied to for financial aid froze my bill payments until the application was either accepted or rejected.

[u/ElleGee5152 → u/air-sign-dominant]

That is so odd to me. My office accepts financial assistance through the hospital for ER physician bills and we delay the transfer to collections long enough for the application to be processed (if we're made aware one is in the works). It's such a simple fix.

[u/Environmental-Top-60 → u/ElleGee5152]

Exactly

[u/Turbulent_Summer6177 → u/air-sign-dominant]

Understandable but it’s not unlawful to collect on the debt.

The time for a decision is coming soon so maybe try to stall a bit longer or start negotiating a payment plan. You should be able to draw that out for a week or two and hopefully by then you’ll hear about he assistance.

[u/a_ne_31 → u/Turbulent_Summer6177]

I would NOT start paying or agree to payments.

[u/Turbulent_Summer6177 → u/a_ne_31]

Why? It appears op has incurred a debt. He’s not disputing that.

[u/a_ne_31 → u/Turbulent_Summer6177]

Because op doesn’t know the exact amount they owe yet, if anything. Agreeing to a payment plan with a total balance locks them in.

[u/[deleted] → u/a_ne_31]

?? What do you mean that they don’t know the exact amount? If the insurance doesn’t cover X amount that means that the patient owes the money.???

[u/a_ne_31 → u/[deleted]]

Can you read? They’re awaiting an allotment of financial aid.

[u/[deleted] → u/a_ne_31]

Then they should have held the statements if thats the case

[u/Environmental-Top-60 → u/Turbulent_Summer6177]

Because charity care as required by the IRS could write the whole thing off then they’d have to refund.

[u/Turbulent_Summer6177 → u/Environmental-Top-60]

Did you even read what wrote? I would guess not.

[u/Magentacabinet]

Call them and let them know that you are waiting for a decision on the financial assistance. Let them know that you would be willing to make a payment arrangement while you wait for the decision. They are more likely to work with you when you are in contact with them. Let them know you can only afford $5 a month and that the financial assistance can take up to 60.

Do not let it go to collections. Most of the time collections is done by a 3rd party and you can't get it pulled back once it is sent.

[u/Mysterious_Luck4674 → u/Magentacabinet]

Yes, do this. Offer to just pay SOMETHING per month until the financial aid decision is made .

[u/air-sign-dominant → u/Mysterious_Luck4674]

Thanks for the advice. I think I’ll try to get as small of a monthly payment set up until I get the decision.

[u/[deleted] → u/air-sign-dominant]

What they said is what I did when I was in a similar situation to yourself. The lady on the phone told me they had to accept whatever I could pay so I said $5 per month. The financial aid kicked in before I ever got a monthly bill.

[u/MaeQueenofFae → u/Magentacabinet]

Actually, it can be pulled back from collections. Most of the time Management simply doesn’t want to do so, because that is an admission that they screwed up.

[u/Magentacabinet → u/MaeQueenofFae]

It can't if it's gone to a 3rd party. If it is an in-house collections it can. Because once it has been sent to collections that debt has already been sold.

[u/MaeQueenofFae]

Ask them to please put your balance due into ‘Pending’ status while your application is still under consideration. Pending will place your account in a hold, and keep it out of collections.

[u/air-sign-dominant → u/MaeQueenofFae]

That’s what I called to ask about, and they refused to do so. They just told me to start making payments, which confused me because hypothetically if someone ended up getting full assistance, would they get refunded for what they paid?

[u/MaeQueenofFae → u/air-sign-dominant]

No. And if you could afford the payments, you wouldn’t need the Charity Care. Call again, you might get someone who is actually competent.

[u/shit69ass → u/air-sign-dominant]

this happened to me and they did refund me the payments I made while waiting for my financial assistance to process.

[u/Known_Paramedic_9503 → u/air-sign-dominant]

Call back and ask to speak to a supervisor. That’s what I did when I had this issue. It stopped everything until a decision was made on financial assistance

[u/Local_Jellyfish7554]

So what my mom did when this happened to her for my sisters hospital bill was made small $10 payments because your still making a payment and they can’t technically send you to collections with that but I hope you get approved for the financial assistance a couple yrs ago my dr ordered labs before starting me on medications then after I was on them for 3 months ordered more labs my insurance denied to pay because I had already gotten them done so I was billed like $300 I applied for the financial assistance they paid everything but like $15 dollars it made everything so less stressful. I hope it works in your favor.
Main part of the story is do the bare minimum of payments like $30 MAX so they can’t send you to collections.

[u/Jaffos]

This happened to my finance, they told her while the application was being processed, it would not go to collections but would still get notices it would. It never went to collections and finally came through, so we just paid the balance.

[u/[deleted]]

Ask if your account can be held until the decision of the financial assistance

[u/No-Cat-2980]

Show up in person, pay them some, but all in Pennies.

[u/Environmental-Top-60]

They must stop collections while your application is pending. Pull IRC 501r6 Extraordinary collections activities.

If they continue you might consider reporting to the attorney general or the IRS. u/dollarfor might have an idea or two.

My suggestion would be to talk to the compliance officer.

[u/Mysterious-Art8838]

Mine was sent to collections while reviewing charity care. I would have paid as much as I could, but once they sent it to collections early I ignored it. Can’t squeeze water from a rock.

[u/AnAnonymousUsername4]

This link states the laws in the US as put forth by the IRS regarding your question.

It is clearly laid out in the Extraordinary Collection Actions and Debt Sales sections what the hospital's obligations are.

Best of luck to you.

Billing and collections - Section 501(r)(6)

[u/InnerDish5915]

Hi how did this work out? I’m still waiting on my assistance application after 3 months! (Ascension Hospital) Thanks.

[u/Vintagerose20]

Call the Attorney General’s office in your state. Google for the phone number. They will tell you what the law is, what your rights are and how you should handle it. It’s free. They will give you better advice than people on Reddit.

[u/Magentacabinet → u/Vintagerose20]

So you think that the attorney general is going to know more about health insurance claims than the licensed health insurance agents that answer the questions here?

[u/a_ne_31 → u/Magentacabinet]

Yeah, they absolutely do know more than a bunch of redditors lol

[u/Vintagerose20 → u/Magentacabinet]

Are you a licensed health insurance agent in OP’s state? Because yes I do.

[u/DoritosDewItRight → u/Vintagerose20]

I don't know why you're getting downvoted, this good advice

[u/HospitalBills-ModTeam → u/[deleted]]

Your comment was removed because it was generally unhelpful or overly simplistic.