Receiving a bill for care you never got or for an amount you do not owe can be confusing and stressful. A recent federal class-action lawsuit filed against Corewell Health and its collection agency, DCM Services, highlights how patients can face aggressive collection efforts for debts they do not actually owe. The suit alleges that the health system engaged in illegal balance billing by pursuing patients for balances that insurers had already contractually written off or settled in full.
Billing errors, coding mistakes and automated collection systems can cause incorrect medical bills to show up in your mailbox anytime. Knowing how these mistakes happen and what rights may protect you is the first step toward fixing the problem.
How invalid medical bills happen
Medical billing errors happen more often than many people realize. Common causes include:
- Billing mistakes: Clinics may enter the wrong procedure code, send duplicate charges or bill before an insurer finishes processing a claim.
- Surprise balance billing: Out-of-network providers may try to bill you for the difference between their charge and what your insurance paid, even when federal law limits that practice in some situations.
- Identity mix-ups: A wrong Social Security number, patient ID or family account can send someone else’s debt to your record.
If you get a bill that looks wrong, do not pay it right away. In some situations, paying a disputed bill can make the dispute harder to resolve.
What are the legal protections available?
Several legal protections may shield you from these incorrect charges. Under the federal No Surprises Act, law generally limits what you can be charged for many out-of-network emergency services and Michigan state law provides additional protections depending on the setting and care received. Furthermore, the Fair Debt Collection Practices Act grants you the right to dispute debts in writing and request validation within 30 days of receiving a debt validation notice.
What to do if you receive an invalid bill
If you get a bill you do not owe, stay calm and gather your records. Compare the bill with your insurance explanation of benefits, receipts and appointment records. If a debt collector contacts you, ask for written validation and dispute any charge you cannot confirm in writing. Acting quickly can help protect your credit and stop an incorrect bill from turning into a bigger problem.