Medical debt is something that can strike your reputation at any moment. Today more and more people will refer to a reputable Pennsylvania medical debt collection agency in order to get their practice afloat. In the current economy, one in three patients in Pennsylvania is not able to pay their medical bills. While this issue lies deeper than any one person can handle, it has lead to a crisis in the medical community.
We all understand the frustrations on both sides of the table. Doctors need their patients to pay in order to have adequate supplies and staffing, while today’s economy just doesn’t support to needs of the average civilian. This intuition combined with the necessary laws concerning debt collection practices is what drives medical professionals into hiring an experienced Collection Agency.
Read on to learn about the current Pennsylvania medical debt climate to help you determine if a collection agency is the right move for you.
Pennsylvania Medical and Health Care Debt Collection Statistics
As mentioned, one in three Pennsylvania patients cannot pay their medical bills. And all the insurance rate in this state is at a low 5.5%, those who have chosen not to take on health insurance say it is because the monthly cost is still too high. These uninsured patients put doctors in a difficult place as they have to treat the ill with no way to pay their staff or suppliers.
A survey conducted by the Pennsylvania Health Access Network and Altarum also determined:
- 32% of Pennsylvanians have trouble paying medical bills
- 10% of Pennsylvanians can barely afford to pay for necessities
- 29% delay having medical procedures due to the cost
Pennsylvania Medical Debt Collection Agency Laws
Unlike some outstanding balances, medical bills cannot seize personal assets due to nonpayment. The statute of limitations under Pennsylvania law is four years. This means that medical professionals may contest a lawsuit to try to regain debt owed by their patients via a Pennsylvania media debt collection agency,
The laws that these agencies must adhere to are the same as every other state. Agencies are forbidden to abuse or harass debtors unlike previous years and must maintain strict moral and professional guidelines.
In the case of a lawsuit, the creditor (i.e. the medical professional) may be able to garnish wages from patients who have outstanding balances.
Pennsylvania Medical Collection Agency Process
Our first step at settling medical debt is to send a demand letter to the patient. This is sent via USPS in the form of a physical letter. From that moment, patients have 30 days to dispute the debt, though a response is appreciated within ten days.
In that time, we recommend the creditor seriously considering to out for Collection calls service or evaluate filing for a lawsuit before the statute of limitations expires. The expiration date does not mean that the creditor cannot still seek payment, but options are greatly limited and the likely hood of receiving a full payment is really low at that point and time.
Professional collection agencies maintain regular contact and even offer services such as skip tracing and bankruptcy screening. If you’re still waiting for your patients to pay their medical expenses, it’s the agency’s job to give them options or to find out why payment has yet to be received.
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References:
https://www.sapling.com/6884913/pennsylvania-law-medical-bill-collection
https://www.debt.org/medical/collections/
https://www.pghfirm.com/blog/understanding-the-debt-collection-process-in-pennsylvania
http://bankruptcylawyerpa.com/blog/pennylvania-statute-of-limitations-on-debt/