How to Dispute a Medical Bill in Collections? [Explained]

If you’ve ever opened a letter and realized a medical bill you forgot (or didn’t even know about!) has landed in collections, you’re not alone.

Medical billing errors, insurance mix-ups, or just simple misunderstandings can lead to this situation. While seeing a bill in collections can be scary, you have options, and disputing it is one of them.

In this blog, I’ll walk you through the process of disputing a medical bill in collections, break it down into manageable steps, and help you feel confident about your next move.


Why Medical Bills Go to Collections

Before jumping into how to dispute a medical bill, let’s quickly understand why it happens.

  • Unpaid Bills: If you forget to pay or are unable to pay your medical bill, the healthcare provider might sell the debt to a collections agency.
  • Billing Errors: Mistakes like incorrect insurance processing, double billing, or coding errors can cause bills to go unpaid.
  • Insurance Delays: Sometimes, insurance takes too long to process claims, leading to confusion about what’s owed.

Regardless of the reason, don’t panic. Disputing a medical bill is possible—and often necessary if there’s been an error.


Step 1: Verify the Bill

The first step is to make sure the bill is accurate. Collections agencies can make mistakes, so don’t assume the amount they’re asking for is correct.

What to Do:

  • Request Validation: Ask the collections agency for a detailed debt validation letter. By law, they must provide proof of the debt, including:
  1. The amount owed
  2. The name of the healthcare provider
  3. When the debt occurred
  • Compare Records: Check the validation letter against your own records, including medical bills and insurance explanation of benefits (EOBs).

If you find discrepancies, you’re on the right track to disputing the bill.


Step 2: Check for Common Errors

Medical billing errors are shockingly common. Here are some issues to look for:

  • Wrong Patient Information: Is the name, date of service, or insurance information incorrect?
  • Duplicate Charges: Were you billed twice for the same procedure?
  • Insurance Issues: Did your insurance company cover the bill as they should have?
  • Out-of-Network Charges: Were you billed for services you thought were in-network?

If you spot an error, note it down. These details will be important for your dispute.


Step 3: Dispute the Bill

Once you’ve confirmed an error or believe the bill is incorrect, it’s time to officially dispute it.

How to Dispute a Medical Bill in Collections:

  • Write a Dispute Letter: Send a formal letter to the collections agency, stating that you’re disputing the bill. Include:
  1. Your name and account number
  2. A clear explanation of why you’re disputing the bill
  3. Copies (not originals) of supporting documents like bills, EOBs, or payment receipts
  • Send Certified Mail: Always send the dispute letter via certified mail with a return receipt so you have proof they received it.
  • Notify the Healthcare Provider: Contact the original healthcare provider to let them know you’re disputing the bill and ask for their help in resolving the issue.

Step 4: Follow Up

After you’ve sent the dispute, it’s important to stay proactive.

Tips for Following Up:

  • Keep Detailed Records: Track every call, email, or letter you send and receive. Write down the date, time, and name of the person you spoke with.
  • Respond Promptly: If the collections agency or healthcare provider requests additional information, respond quickly to keep the process moving.
  • Escalate if Needed: If the collections agency doesn’t respond or continues to harass you, you can escalate your case to regulatory bodies like the Consumer Financial Protection Bureau (CFPB).

Step 5: Check Your Credit Report

Medical debts in collections can show up on your credit report and damage your score. Once you’ve disputed the bill, monitor your credit report to ensure it’s updated correctly.

How to Check Your Credit Report:

  • Visit AnnualCreditReport.com for a free copy of your report.
  • Look for the disputed medical bill and ensure any resolved disputes are reflected accurately.

Sample Dispute Letter

Here’s a template you can use to write your dispute letter:


[Your Name]
[Your Address]
[City, State, ZIP Code]
[Date]

[Collections Agency Name]
[Agency Address]
[City, State, ZIP Code]

Subject: Dispute of Medical Bill – [Account Number]

Dear [Collections Agency Name],

I am writing to dispute the medical bill in collections for the amount of [$Amount], associated with [Original Healthcare Provider Name] for the service date [Date].

I believe this bill is inaccurate due to [briefly explain reason, e.g., “insurance coverage” or “duplicate charges”]. Attached, please find copies of supporting documentation, including [list documents, e.g., “Explanation of Benefits (EOB)” or “payment receipts”].

Under the Fair Debt Collection Practices Act (FDCPA), I request validation of this debt. Please respond with verification of the bill’s accuracy.

I appreciate your attention to this matter and look forward to resolving it promptly.

Sincerely,
[Your Name]


FAQs: How to Dispute a Medical Bill in Collections

What if the collections agency doesn’t respond to my dispute?

If the agency fails to respond within 30 days, they must remove the debt from your credit report. You can file a complaint with the CFPB if they don’t comply.

Can I negotiate a medical bill in collections?

Yes, even if the debt is valid, you can try negotiating a settlement with the collections agency. Often, they’re willing to accept less than the full amount.

Does disputing a medical bill affect my credit score?

Disputing a bill itself doesn’t harm your score, but unpaid collections can lower your credit score. Resolving disputes quickly can help minimize the impact.

What if my insurance was supposed to cover the bill?

Contact your insurance provider immediately. Sometimes, claims can be reprocessed if the error was on their end. Include their response in your dispute documentation.


Final Thoughts

Disputing a medical bill in collections can feel overwhelming, but by taking it one step at a time, you can protect your rights and avoid paying for errors.

The key is to stay organized, keep detailed records, and communicate clearly with both the collections agency and healthcare provider.


Disclaimer: This blog is for informational purposes only and does not constitute legal or financial advice. Always consult with a professional for advice tailored to your situation.


Got any tips or experiences with disputing medical bills? Let’s share in the comments.

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