The majority of people tuck medical bills into a drawer in the hopes that they will go unnoticed. They do occasionally. Most of the time, they don’t, and by the time a collections notice or, worse, a court summons shows up, things have become much more complicated than they should have.
In a nutshell, you can be sued for unpaid medical bills. To recoup unpaid amounts, hospitals, clinics, and third-party debt collectors do file lawsuits. It occurs more frequently than people realize, and it usually goes unnoticed. For example, a default judgment may be entered while the defendant was unaware that they were being sued. The longer answer, however, includes state law, timing, and a few protections that the majority of patients never consider utilizing.
Consider Texas as a helpful illustration. Medical providers have about ten months from the date of service to send you a bill, according to Texas law. The provider may no longer have the legal right to collect all or part of what they believe you owe if they miss that window and the first bill is received after the beginning of the eleventh month after your care. It is a statutory protection that is hardly ever utilized because very few patients are aware of how to inquire about it. That has a subtle irritating quality.
The statute of limitations, which is four years in Texas, comes next. A provider or collector may file a lawsuit to recoup the debt within that time frame. The right to sue normally expires four years after the debt became legally due. Although collectors may still contact you and the debt may still appear on your credit report, they are no longer able to take you to court. Acknowledging the debt or even making a small payment can restart that clock, which is a significant catch. Unbeknownst to them, people have reset their own statute of limitations, making a past-due debt an active legal threat.
Many customers are still unaware that balance billing plays a role in this scenario. Certain protections may stop the provider from charging you for the difference between what your insurer paid and what the provider charges if you received emergency care or were treated by an out-of-network provider without being given a true choice. Particular regulations pertaining to balance billing have become much stricter in Texas in recent years. It’s possible that the massive bill that arrived in your mailbox three months after your hospital stay isn’t totally or even partially legitimate.
When you look closely at these laws, you get the impression that the system is built on the presumption that patients won’t resist. Most won’t. Most either pay what is required of them or default without being aware that they have a defense. Collectors are aware of this. Additionally, they are aware that the majority of people won’t look up the date the bill was sent, figure out how many years have gone by since the date of service, or inquire as to whether the provider was even allowed to bill them.
In the event that a medical bill seems incorrect or a lawsuit arises, you should actually compare the date of service with the date on the bill. Find out what your state’s statute of limitations is. Determine if the provider was part of the network or not. Keep all written documents, including billing statements, payment receipts, and letters explaining benefits. Additionally, don’t disregard a lawsuit if one is actually filed. Wage garnishment and liens are two consequences of a default judgment that are typically far more disruptive than the initial bill.
It is possible to be sued for medical debt. However, having a valid legal defense that no one bothered to present to you is equally important.
