Medical collections can be a huge problem for anyone trying to get credit repaired.
We have all received unexpected bills from the hospital or clinic and wondered why our insurance doesn’t cover them. Sometimes these bills are HUGE and most people struggle to pay them.
Unfortunately, this is not a debt that will simply go away if you don’t pay. Medical providers sell the debt to collection agencies for pennies on the dollar. Then the collector will add interest and pester you for the full payment, and often double or even triplicate the same account to the credit bureaus.
It’s a terrible system that hurts a lot of people. But as a loan hero, there are secret ways to fight back and WIN!
In this article, I’m going to tell you exactly how.
Here’s what you need to know:
According to the Department of Health and Human Services, if the debt to a medical facility is not paid, they have the right to take action to collect the debt, including selling your personal information to a debt collection agency.
However, the information that can be made available to the collector is very limited.
You can only provide your name, address, social circle, date of birth, payment history and the location and name of the facility where you were treated.
You absolutely cannot tell the collector the nature of your treatment or details of the procedures. This includes documents or bills detailing the medications you have taken, ailments, or illnesses for which you may have been diagnosed or treated.
If a debt collection agency provides you with these details, you are directly breaking HIPAA regulations and paying huge fines – and my friend is that Secret To Removing Medical Debt From Your Client’s Reports.
Here’s why this is important
The main purpose of HIPAA is to prevent anyone from misusing our personal health information. HIPAA regulations affect debt collection agencies when it comes to medical debt.
You have to sign one HIPAA Business Associate Agreement to indicate that they comply with HIPAA regulations that contain proprietary health information.
In order to collect a medical claim, debt collection agencies don’t need detailed information about your health and medical history.
Collection agencies are also responsible for ensuring that any proprietary health information they receive is protected from unauthorized access.
How do you use HIPAA to clear medical collections?
Of course, you should always grab the low hanging fruit by denying the collection with the credit bureaus first. Sometimes this results in a simple deletion.
If you’ve tried this, the next step is to request validation. You can use the validation letters in your Credit Repair Cloud library and wait for the response.
If the collection agency responds with too much personal information about your client or details of medical procedures performed, it’s time to notify them.
Use the HIPAA (Validation of Medical Debt) application which is also included in your Credit Repair Cloud.
This is an interesting letter that can do a very good job of scaring the Bejesus of debt collection agencies. They are essentially threatening a HIPAA violation lawsuit and can usually convince any debt collection agency to delete the account if it has violated the HIPAA.
This is a great tactic that often results in deletion.
At the very least, even if they don’t delete the collection from your client’s credit report, you can probably use this as a strong bargaining point and aim for one payment per deletion.
So thats it! With the right letters and tactics, you can take power out of debt collection agencies and get back into the hands of the people they try to hurt.
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