Consumer advisory: Pause and review your rights when you hear from a medical debt collector
A call from a debt collector about a bill from a healthcare provider can be stressful. The debt collection might pile on top of a difficult health situation for you and your family. Medical bills can be confusing and unclear. Some people simply pay the amount shown in the debt collection notice if they can, because they want to settle the problem and avoid the hassle. But with medical debt collections, that might not be your best move.
Under federal law, you have rights and protections when you deal with debt collectors. Debt collectors aren’t allowed to ask you to pay charges that you don’t actually owe. For example, you don’t owe money for services that you didn’t receive, charges that are inflated, or bills that were already paid. Plus, you can often reduce the amount you pay by negotiating with healthcare providers or debt collectors.
Here are actions you can take instead of simply paying a debt collection bill you’re not sure about.
Request a detailed list of charges
Ask your healthcare provider or the debt collector for an itemized bill, sometimes called a “superbill.” A superbill shows each medical billing procedure code, the amount paid by your insurance, and the amount you owe. The list makes it easier to tell whether the charges are accurate.
Once you receive an itemized bill, look for charges that can’t legally be collected. Some examples might be:
- Costs for a healthcare service you never received
- Amounts that are inflated beyond legal limits – for example, surprise bills that are illegal under the No Surprises Act
- Charges for a service that’s more expensive than the one you received
- Bills that were already paid by you or by your insurance, or handled through financial assistance or charity care programs
- Details that suggest the bill is incorrect, such as wrong dates, medications, or procedures
Laws in many states say that debt collectors can’t sue you to collect debts that are several years old. An attorney can advise you about the laws and time limitations in your state.
Negotiate the amount you owe
Debt collectors might not tell you that medical charges can be negotiated. You can start by going back to the healthcare provider and asking for reductions. Then, you can talk to the debt collector and ask how to lower the amount you owe.
A patient advocate in your area can help. See facts about patient advocates from the Centers for Medicare & Medicaid Services . Patient advocates can help you understand your bill, apply for financial help, and request details about your medical charges. VA health care facilities have patient advocates on staff. Check the website for your healthcare provider or hospital to find a patient advocate who can work with you.
Older adults can check with their Area Agencies on Aging to find specialists in health insurance .
Try to avoid paying off medical charges using a credit card or other loan, because interest and fees can add to what you owe. Instead, try working with the healthcare provider and debt collector on a payment plan.
Submit a complaint
Debt collectors must comply with federal law. They can’t collect amounts that aren’t owed and they can’t make harassing or abusive calls. They have to follow requirements about reporting debts to consumer reporting companies. They can’t call you around the clock, and you have the right to tell them to stop contacting you. See more about your debt collection rights and protections.
You can submit a complaint about a problem with a financial product or service, including debt collection, at consumerfinance.gov/complaint or by calling (855) 411-CFPB (2372).
Get legal help
You can sue debt collectors when they violate federal law. Talk with a lawyer about a medical charge you believe is illegal or a debt collector you believe is breaking the law. Your local legal aid agency or bar association has information about lawyers who can help you. See tips for finding an attorney in your state.
Catch up with CFPB’s work on medical debt
A rule recently proposed by the CFPB bans medical bills from credit reports. The rule, if finalized, means debt collectors cannot use credit reporting to push you into paying medical bills, including inaccurate bills that you do not owe.
Find out more about the CFPB’s work on addressing problems in medical debt