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Georgia is often seen as a “creditor-friendly” state thanks to its efficient Magistrate Court system and strong garnishment laws. But for medical providers, this reputation is dangerous.

If your agency treats Georgia like “just another state,” they are likely missing the strict 75-day deadline to perfect a hospital lien. Once that window closes, your right to collect from a lucrative auto accident settlement is often gone forever.

Furthermore, the Surprise Billing Consumer Protection Act (HB 888) has criminalized standard balance-billing practices for out-of-network care. If your collectors don’t know the difference between a “qualified emergency service” and a standard bill, they are walking you into a regulatory nightmare.

We don’t just “dial for dollars.” We act as a revenue firewall, navigating the specific O.C.G.A. statutes to secure your payments before they legally expire.

Need a Medical Collection in Georgia? Contact Us

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Deep Analysis: The 3 Revenue Leaks in Georgia

Collecting in the Peach State requires a strategy that accounts for specific legislative pitfalls. Here is why national agencies often fail here:

1. The “75-Day” Lien Deadline

• The Law: Under O.C.G.A. § 44-14-471, hospitals must file a verified statement of lien within 75 days of the patient’s discharge to secure rights to a personal injury settlement. (Physician practices have 90 days).

• The Risk: Most agencies wait 90-120 days before even looking at an account. By the time they receive the file, the deadline to perfect the lien has already passed. You lose your priority claim on the insurance settlement.

• Our Solution: We flag “accident code” accounts immediately upon intake. We file the preliminary lien notice within the 75-day window, ensuring you get paid before the patient spends their settlement check.

2. The HB 888 “Balance Billing” Trap

• The Law: The Surprise Billing Consumer Protection Act (HB 888) prohibits billing patients for more than their in-network cost-sharing amount for emergency services, even if you are out-of-network.

• The Risk: If your agency aggressively pursues a patient for a “balance bill” that is now illegal under state law, you face penalties and the debt is uncollectible.

• Our Solution: We scrub accounts against the “Emergency/Non-Emergency” status and insurance network data. We ensure we are only pursuing the legal patient responsibility (deductibles/copays), protecting your reputation.

3. The “Intake Form” Statute Gap (4 vs. 6 Years)

• The Law: Georgia has two statutes of limitations: 6 years for simple written contracts, but only 4 years for “open accounts” (oral agreements).

• The Risk: If your patient intake forms are vague or missing a signature, the court may classify the debt as an “open account,” slashing your legal collection window by two full years.

• Our Solution: We audit your intake paperwork. If we see “weak” contracts, we prioritize those accounts for faster resolution before the 4-year “open account” clock runs out.

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Our 4-Step “Peach State” Recovery System

We have calibrated our recovery model to leverage Georgia’s powerful Magistrate Courts while respecting HB 888.

Phase 1: The Trauma & Liability Scrub (Pre-Collection)

• The Strategy: Is the debt is related to a motor vehicle accident (MVA). If yes, we immediately verify the 75-day lien window. Does the balance falls under HB 888 restrictions.

Phase 2: The “O.C.G.A.” Demand (Steps 1 & 2)

• The Strategy: We send compliant demands that clearly state the debt validation details required by federal and state law. We focus on the 7% statutory interest (if applicable) to encourage early payment.

• The Cost: A simple flat fee (approx. $15/account). You keep 100% of recoveries.

Phase 3: The Garnishment Lever (Step 3)

• The Strategy: Georgia is one of the few states that allows Continuing Garnishment. This means one court order can capture wages week after week until the debt is paid (unlike “one-shot” states).

• The Negotiation: We explain this reality to the debtor. “Mr. Smith, in Georgia, a garnishment doesn’t stop after one paycheck. It continues until the entire balance is paid. Let’s set up a voluntary plan to avoid that.”

• The Cost: 40% contingency.

Phase 4: Magistrate Court Execution (Step 4)

• The Strategy: For refusals, we utilize Georgia’s efficient Magistrate Courts (Small Claims). We pursue judgment and then execute a “fi. fa.” (writ of fieri facias) to levy bank accounts or wages.

• The Cost: 50% contingency.

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Regional Strategy: From Metro Atlanta to the Coast

Georgia is economically diverse. We adjust our tactics based on the patient’s location.

Region	Economic Profile	Collection Strategy
Metro Atlanta (Fulton/Gwinnett)	High Traffic / Corporate	Heavy focus on Lien Perfection due to high volume of auto accidents. We also navigate the complex hospital systems (Emory/Northside) billing disputes.
South Georgia (Valdosta/Albany)	Agricultural / Rural	Seasonal cash flow. We structure payment plans around harvest cycles for agricultural workers, improving consistency.
Coastal (Savannah/Brunswick)	Port / Logistics	Focus on garnishment effectiveness, as many residents work for large, stable logistics companies where wage attachment is straightforward.

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FAQ: The Executive Summary

Q: Can you garnish wages in Georgia?

A: Yes. Georgia is very creditor-friendly. We can garnish up to 25% of disposable earnings (or the amount exceeding 30x minimum wage). Even better, it is a “continuing” garnishment that stays in place for 179 days or until the debt is paid.

Q: What is the interest rate limit?

A: If your contract doesn’t specify a rate, the legal rate is 7% simple interest per year. If you have a written contract, you can agree to higher rates (within reason). Judgments accrue interest at Prime + 3%.

Q: Can you report “Surprise Bills” to credit bureaus?

A: No. Under HB 888, if the bill is a “surprise bill” (out-of-network emergency care, etc.), you generally cannot report the balance-billed amount to credit agencies. We ensure strict compliance here to avoid lawsuits.

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Don’t let the 75-day deadline erase your accident revenue.

Being in the medical profession means that you are making people healthier, helping people deal with chronic problems, and saving lives. However, even though those things are huge for the betterment of the community, still medical professionals are also businessmen and must do everything to make their practice profitable.

Click here for a Free Audit of Your Georgia Claims

New Jersey is no longer a standard collection environment. With the enactment of the Louisa Carman Medical Debt Relief Act (July 2024), the state has implemented some of the strictest patient protections in the nation. If your current agency is still relying on credit reporting threats or aggressive wage garnishment, they are walking you into a compliance minefield.

For healthcare CFOs and Revenue Cycle Directors—from the large health systems in Hackensack to private practices in Cherry Hill—the “old way” of collecting is dead. You cannot simply demand payment; you must now navigate a complex flowchart of mandatory payment plans, income-based garnishment bans, and strict interest caps.

We don’t fight these new laws; we have re-engineered our recovery process to function within them, ensuring you get paid without triggering an Attorney General investigation.

Need a Medical Collection Agency in New Jersey? Contact us

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Deep Analysis: The 3 New Barriers to Revenue in NJ

The Louisa Carman Act introduced three specific “revenue blockers” that most national agencies are not prepared for.

1. The “600% FPL” Garnishment Ban

• The Law: Effective July 2025, New Jersey prohibits wage garnishment for medical debt if the patient’s income is below 600% of the Federal Poverty Level.

• The Risk: This is not just for “low income” patients. For a family of four, 600% of the FPL is nearly $187,000. This effectively removes the threat of garnishment for the vast majority of your middle-class patients.

• Our Solution: We shift focus away from wage garnishment (which is now often impossible) and towards asset execution (bank levies) and voluntary settlement negotiation based on psychological urgency rather than legal threats.

2. The “Credit Reporting” Blackout

• The Law: Medical debt can no longer be reported to credit bureaus if it is under $500 (regardless of date) or for any services provided after July 22, 2024. Any reported debt that violates this becomes legally void.

• The Risk: The traditional agency tactic of “wrecking their credit score” to force payment is now illegal in New Jersey.

• Our Solution: We rely on direct contact frequencies and attorney-backed demand letters. Since we can’t hurt their credit score, we use the “nuisance factor” of consistent, compliant professional follow-up to drive payment.

3. The Mandatory 120-Day “Freeze”

• The Law: You cannot engage in any collection actions until 120 days after the first bill is sent. During this time, you must offer a reasonable payment plan (max 3% interest).

• The Risk: Sending an account to collections at “Day 90” (the industry standard) is now a violation of state law.

• Our Solution: We have adjusted our intake API to automatically reject NJ files younger than 120 days, protecting you from accidental “early placement” liability.

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Our 4-Step “Garden State” Recovery System

We have calibrated our model to clear the hurdles of N.J.S.A. 2A:44 (Liens) and the new Medical Debt Relief Act.

Phase 1: The “Charity Care” Scrub (Pre-Collection)

• The Strategy: New Jersey regulations (N.J.A.C. 10:52-11.5) strictly mandate that hospitals screen patients for the Charity Care Program before billing.

• The Action: We audit your files to ensure this screening is documented. If a patient claims hardship, we pause collection and help facilitate the Charity Care application. This often results in you getting paid by the State rather than chasing a broke patient.

• Cost: Included in service.

Phase 2: The “Safe Harbor” Outreach (Steps 1 & 2)

• The Strategy: Once the 120-day freeze lifts, we send the legally required “30-Day Pre-Collection Notice” which includes the mandatory statement that the debt will not be reported to credit bureaus.

• The Psychology: We use this notice to offer a “Final Amnesty” payment plan that complies with the state’s new 3% interest cap.

• The Cost: Flat fee (approx. $15/account). You keep 100% of recoveries.

Phase 3: The “Lien & Levy” Escalation (Step 3)

• The Strategy: Since wage garnishment is restricted for many, we look for other liquidity.

• For Accident Cases: We utilize N.J.S.A. 2A:44-41 to file hospital liens with the county clerk. These liens attach specifically to personal injury settlements, ensuring you get paid before the patient receives their check.

• The Cost: 40% contingency.

Phase 4: Strategic Litigation (Step 4)

• The Strategy: For high-income debtors (above the 600% threshold) or those with significant assets, we file suit in the Superior Court of New Jersey. We target bank accounts and property liens, which are often more effective than wage garnishment in NJ anyway.

• The Cost: 50% contingency.

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Regional Strategy: One State, Two Markets

We adjust our approach based on the patient’s economic zone.

Region	Economic Profile	Collection Strategy
North Jersey (Bergen/Hudson)	High Income / Commuter	High usage of payment plans. We structure plans to fit the “3% interest” rule, making them attractive alternatives to ignoring the bill.
South Jersey (Camden/Gloucester)	Philly Metro / Mixed	Heavy focus on Insurance Cleanup. Many patients here cross state lines for care; we are experts at resolving “Out of Network” disputes with PA-based insurers (like Independence Blue Cross).
The Shore (Monmouth/Ocean)	Seasonal / Retail	We time our calls to align with seasonal cash flow for business owners and service workers.

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FAQ: The Executive Summary

Q: Can we charge interest on medical debt in NJ?

A: Yes, but it is capped strictly at 3% per year under the Louisa Carman Act. Charging the old standard of 6-10% is now illegal. We automate this calculation to ensure you never commit usury.

Q: What is the Statute of Limitations?

A: You generally have 6 years to file a lawsuit for unpaid medical bills in New Jersey. However, because you must wait 120 days to start, your effective window is slightly shorter. Speed is critical once that window opens.

Q: How do we handle accident cases (MVA)?

A: New Jersey private hospitals must file a Notice of Lien with the county clerk to secure rights to a settlement. Unlike some states, this must be done meticulously to prevent the “release of claim” by the patient. We handle this filing for you.

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Click here for a Free “Louisa Carman Act” Compliance Audit

Given Michigan’s unique intersection of “No-Fault” auto insurance laws and rigid garnishment reporting rules, it is crucial to partner with a specialist who understands the local Public Health Code. Attempting do-it-yourself collection here doesn’t just risk lower recovery—it risks permanently extinguishing your right to payment under the strict “One-Year Back” rule.

For revenue cycle directors in Michigan—whether you are with a major system like Henry Ford Health or a private practice in Grand Rapids—collecting medical debt requires navigating one of the most complex insurance environments in the country.

If your agency treats a “PIP Claim” the same way they treat a standard “Health Insurance” balance, they aren’t just failing to collect—they are actively letting your legal claim expire. We act as a specialized revenue firewall, protecting you from the administrative traps hidden in Michigan’s statutes.

Need a Medical Collection Agency? Contact us

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Deep Analysis: The Three “Revenue Leaks” in Michigan

Collecting in the Great Lakes State requires a strategy that accounts for specific legislative pitfalls. Here is why standard national agencies fail here:

1. The “One-Year Back” Rule (No-Fault Auto)

• The Law: Under Michigan’s No-Fault Act (MCL 500.3145), you generally have only one year from the date of service to file a lawsuit against an auto insurer for unpaid medical bills.

• The Risk: Many agencies treat auto-accident accounts like standard bad debt, letting them sit in a queue for months. If they wait 12 months and 1 day, your claim is extinguished forever. You cannot sue the insurer, and strict balance-billing rules often prevent you from billing the patient.

• Our Solution: We flag all “MVA” (Motor Vehicle Accident) accounts upon intake. If the Date of Service is approaching the 10-month mark, we expedite the file to our legal team to preserve your rights before the statute expires.

2. The “6-Month Garnishment” Disclosure

• The Law: Michigan allows wage garnishment until the debt is paid (unlike states where it expires quickly). However, there is a catch: The creditor must provide a statement of the remaining balance to the employer and defendant every 6 months.

• The Risk: “Set it and forget it” agencies often fail to send these mandatory updates. This creates a valid defense for the debtor to have the garnishment dismissed and can even compel you to return collected funds.

• Our Solution: Our system automatically generates and mails these 6-month statutory updates, ensuring your revenue stream doesn’t dry up due to a clerical error.

3. The Strict “100-Day” Lien Limit

• The Law: Michigan’s Hospital Lien Act is much tighter than other states. You can only place a lien on a patient’s tort settlement for the first 100 days of treatment (following the accident).

• The Risk: Filing a lien for treatment provided on “Day 101” is legally invalid and can expose your facility to “slander of title” counter-suits.

• Our Solution: We audit your itemized bills before filing any liens. We separate “Lien-Eligible” charges from “Standard Collections” to ensure every legal filing is bulletproof.

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Our 4-Step “Great Lakes” Recovery System

We have calibrated our recovery model to fit Michigan’s 6-year statute of limitations for contracts and its specific consumer protections.

Phase 1: The No-Fault Triage (Pre-Collection)

Before we demand payment from a patient, we check the “Financial Class” of the debt.

• Is this an Auto Accident? If yes, we verify if the “One-Year Back” clock is ticking. We don’t harass the patient for a bill that Allstate or State Farm should have paid.

• Cost: Included in service.

Phase 2: The “Statutory Nudge” (Steps 1 & 2)

• The Strategy: We send a series of firm, compliant demands. We reference Michigan’s 6-year Statute of Limitations, reminding debtors that this debt will not simply “go away” quickly (unlike in states with shorter windows like PA or DE).

• The Cost: A simple flat fee (approx. $15/account).

• The Benefit: You clear out the low-hanging fruit—patients who simply forgot to pay—without paying a commission. You keep 100% of these recoveries.

Phase 3: The Wage Lever (Step 3)

• The Strategy: If the patient ignores us, we escalate. Michigan law allows garnishment of up to 25% of disposable earnings.

• The Negotiation: We use this as leverage. “Mr. Jones, a court order could take 25% of your paycheck. Let’s set up a voluntary plan for 10% instead.” This logic works.

• The Cost: 40% contingency.

Phase 4: Litigation & Maintenance (Step 4)

• The Strategy: For high-balance accounts, we file suit in the local District Court. Once we get the judgment, we manage the periodic garnishment process, including the mandatory 6-month balance statements, so you don’t have to track them.

• The Cost: 50% contingency.

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Regional Strategy: From Detroit to the U.P.

Michigan is economically diverse. We adjust our tactics based on the patient’s location.

Region	Economic Profile	Collection Strategy
Southeast (Detroit/Wayne Co.)	High Auto Insurance Volume	Heavy focus on “No-Fault” coordination and PIP claim verification.
West MI (Grand Rapids)	Medical Manufacturing/Service	Focus on employer benefit verification; higher success with voluntary payment plans.
Northern MI / U.P.	Rural/Tourism	We utilize “seasonality” in our calls, knowing cash flow is tighter in winter months for tourism workers.

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FAQ: The Executive Summary

Q: Can you collect on a debt that is 5 years old?

A: Yes. Michigan has a 6-year Statute of Limitations for contract disputes (which covers most medical debt). However, collecting on a 5-year-old debt is difficult. We recommend listing accounts at 90-120 days past due for maximum recovery.

Q: What if the patient claims they have “No-Fault” insurance?

A: We stop and verify immediately. If they were in an accident, their auto insurance is likely the primary payer. We request the claim number and adjuster info to file before the 1-year deadline hits.

Q: Do you report to credit bureaus?

A: We can, but with caution. With state-level discussions (Senate Bill 451) proposing to ban medical debt reporting in Michigan, we are shifting our focus to direct contact and legal recovery rather than relying on credit damage.

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Click here for a Free Compliance Audit of Your Michigan Claims

For healthcare providers in Illinois—whether you are a large hospital system in Cook County or a private clinic in Peoria—the rules of the game have fundamentally shifted.

With the “Protect Illinoisans from Unfair Medical Debt” Act taking full effect and new credit reporting bans starting in 2025, the old “demand and threaten” model of collections is dead. If your current agency is still treating your patients like standard debtors, they aren’t just failing to collect—they are actively exposing you to lawsuits from the Attorney General’s office.

We offer a smarter, compliant path forward. We turn your accounts receivable into cash without turning your patients into enemies.

Need a Medical Collection Agency? Contact us

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The New Illinois Reality: Why You Need a Specialist

Illinois is no longer a “standard” collection state. It is now one of the most highly regulated environments for medical debt in the country.

• The “Screening” Trap: As of 2024, you cannot legally send a patient to collections until you have screened them for financial assistance eligibility. If your current agency isn’t verifying this data before they call, every dial is a potential violation.

• The Credit Bureau Blackout: Starting January 1, 2025, medical debt under specific thresholds can no longer be reported to credit bureaus in Illinois. This removes the “leverage” most lazy agencies rely on.

• The 5% Interest Cap: For consumer debt judgments under $25,000, the statutory interest rate is capped at 5% (not the standard 9%).

We don’t fight these laws; we build our strategy around them.

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Our “Compliance-First” Recovery System

We have adapted our 4-step model specifically for the Illinois healthcare market. We treat compliance as a firewall that protects your revenue cycle.

Phase 1: The Eligibility Scrub (Pre-Collection)

Before we demand a penny, we help you ensure your files are “clean.” We verify that the mandatory financial assistance screening steps have been documented. This simple check prevents the 90-day legal delays that plague other agencies.

Phase 2: Patient Engagement (Step 1 & 2)

• The Strategy: We use flat-fee diplomacy. We send official, clear notices that explain the debt without using aggressive legal jargon that triggers complaints.

• The Cost: Flat fee (approx. $15/account).

• The Benefit: This recovers funds from patients who forgot to pay or misunderstood their EOB, without you paying a commission. You keep 100% of these recoveries.

Phase 3: Specialized Recovery (Step 3)

• The Strategy: For patients who ignore the notices, our medical debt specialists take over. We know how to negotiate payment plans that fit within Illinois’ strict “disposable earnings” garnishment limits.

• The Cost: 40% contingency.

• The Benefit: We only get paid if you get paid.

Phase 4: Legal Enforcement (Step 4)

• The Strategy: When necessary, we utilize our network of Illinois attorneys to pursue judgments, respecting the new 5% interest caps for smaller debts.

• The Cost: 50% contingency.

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Why Illinois Practice Managers Choose Us

1. We Navigate the “Chicago vs. Downstate” Divide

Collecting in Naperville is different from collecting in Carbondale. We adjust our communication style based on the demographic, ensuring we connect effectively whether the patient is an urban professional or a rural family.

2. We Protect Your “Community Benefit” Status

For non-profit hospitals, aggressive collections can threaten your tax-exempt status. Our respectful approach safeguards your standing in the community while ensuring you have the revenue to keep operating.

3. Wage Garnishment Expertise

Illinois has some of the strictest wage protection laws in the US (protecting up to 45x the federal minimum wage of disposable earnings). We don’t waste your time pursuing garnishments against patients who are legally judgment-proof; we focus our energy where it yields results.

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Regional Focus: Who We Serve

• Chicagoland & Cook County: High-volume collection for urgent care chains and dental networks.

• Central Illinois (Peoria/Bloomington): Specialists in working with patients of large regional health systems (like OSF or Carle counterparts) to recover copays and deductibles.

• Rockford & Northern IL: assisting private practices in recovering revenue amidst a shifting manufacturing economy.

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Frequently Asked Questions

Q: Can you still report medical debt to credit bureaus in Illinois?

A: It is becoming increasingly restricted. As of 2025, specific medical debts (often those under $500 or medically necessary debts) are barred from credit reports. We rely on communication and negotiation, not credit score threats, to get you paid.

Q: What is the Statute of Limitations for medical debt in Illinois?

A: Generally, 5 years for unwritten contracts (which covers most standard medical debt) and 10 years for written contracts. However, waiting years makes collection difficult. The “Golden Hour” for recovery is the first 90 days past due.

Q: Do you handle the “Financial Assistance Screening” for us?

A: We are not your billing department, but we act as a final “gatekeeper.” We will flag accounts that look like they haven’t been properly screened so you can fix them before a violation occurs.

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Your revenue cycle shouldn’t be stuck in gridlock like the Kennedy Expressway.

Click here to Request a Quote & Audit

 

Illinois faces debt collection issues just like the rest of the country. Doctors provide medical treatment to patients without the confidence that they will be paid on time. Unfortunately, several accounts receivable must be turned over to medical debt collection agencies to minimize losses resulting from unpaid patient bills.

If you are a medical professional in Illinois who needs the help of a collection agency, you must ensure that the debt collectors adhere to Illinois state collection agency laws. We’ve also included vital statistics that can help you decide whether or not to move forward with a collection agency.

 

Here are some key medical debt statistics in Illinois: Approximately 17% of Illinois residents have some form of medical debt. Over 20% of Illinois households earning less than $35,000 annually struggle with unpaid medical bills. Black and Hispanic communities are far more affected by medical debt, with rates nearly double those of white residents. Medical bills are the leading cause of bankruptcy filings in the state, accounting for a significant portion of cases. Cook County has one of the highest rates of medical debt in Illinois, with residents facing challenges in affording healthcare. Hospital charity care programs in Illinois have seen an increase in applications, reflecting the growing burden of medical costs. Illinois ranks 28th in the nation for the percentage of residents with medical debt in collections, indicating a moderate debt burden compared to other states.

Illinois is governed by both state laws and federal laws, primarily the Fair Debt Collection Practices Act (FDCPA). The FDCPA protects consumers from abusive, unfair, or deceptive practices by debt collectors.

Illinois has additional laws that supplement the federal law. For example, the Illinois Collection Agency Act regulates the conduct of collection agencies in the state. The act requires collection agencies to obtain a license and sets standards for their behavior.

For written contracts, the statute of limitations is 10 years from the date of the last activity. 

Illinois Medical Debt Collection Agency Laws

In recent years, the U.S. has narrowly defined individual Statute of Limitations for each state. The limitations act as a guideline for Illinois medical debt collection agencies. It negates unprofessional and unwarranted behavior that patients have received from companies in the past. This type of behavior includes harassing, abusing, and using unfair practices in order to get a patient to pay their medical debts. HIPAA compliance is mandatory for collection agencies serving medical debts.

This conduct negatively affected the medical professionals who sold their debt to the collection agency. Thanks to the Illinois medical debt collection agency laws, these actions are no longer prevalent today.

The Illinois medical debt collection agency laws also enforce these two acts:

• Hospital Uninsured Patient Discount Act: This act includes 100% discounts for uninsured patients at certain income levels
• The Fair Patient Billing Act: This law ensures that hospitals provide their patients with multiple payment opportunities with requirements to effectively promote these avenues to their patients to negate the rise of medical debt.

 Illinois Medical Collection Agency Process

Professional collection agencies take a friendly, diplomatic and obligatory approach to settle debts with patients. We want the process to be as smooth as possible and take pride in ensuring the relationships between patients and doctors remain intact.

The debt collection process includes maintaining regular contact with the patient and ensuring they know their payment options. Keeping detailed records of their payments and offering additional services such as skip-tracing, bankruptcy screening, and checking for change of address.

Need a Medical Collection Agency in Illinois? Contact us

 

References:
https://www.chicagobusiness.com/article/20170324/NEWS03/170329904/illinois-unpaid-medical-bills-reach-3-5-billion

www.needhelppayingbills.com/html/illinois_medical_debt_and_bill.html

http://www.illinoisattorneygeneral.gov/consumers/debtcollection.html

https://www.team-iha.org/finance/charity-care-financial-assistance/hospital-uninsured-patient-discount-act