What Can I do About Medical Debt Collection During the Pandemic?

Many thousands of people have been hospitalized with COVID-19 infections and have been incurring medical bills, while many thousands more owe significant medical debt due to previous hospitalizations, surgeries, and treatments. While you might think that hospitals and other healthcare facilities are holding off on aggressive debt collection tactics during the pandemic and while they are struggling to treat COVID-19 patients. However, according to a recent article in ProPublica, the opposite is actually true. As that article explains, while healthcare providers at hospitals across the country deal with sick patients, many of whom are fighting for their lives, the billing departments at those facilities are often hounding patients who owe money.

Aggressive Hospital Debt Collection Continues Despite Job Losses
Consumers across the country are dealing with many different effects of the coronavirus pandemic—from COVID-19 infections and illness to job loss and reduction in wages. While many Americans are struggling to make mortgage or rent payments and are having difficulty paying for day-to-day necessities, they are also facing hospital debt collection. Many consumers with medical debt are learning that their wages have been garnished, while others are facing debt collection lawsuits from hospital systems. As the article points out, many hospitals have filed dozens of debt collection lawsuits against consumers in the weeks since the pandemic stay-at-home orders took effect.

For example, the article cites Froedtert Hospital in Milwaukee, Wisconsin, which has filed at least 46 small claims against debtors since March 12, 2020, when the governor declared a state of emergency. While the hospital later indicated that no additional lawsuits would be filed, other hospitals have continued to take such aggressive debt collection action. For example, Johns Hopkins Medical Center has continued to take legal action to collect debts from patients. Since 2009, records suggest that the hospital system has filed about 2,400 lawsuits against patients for unpaid medical bills. The article also cites university hospital systems that have filed claims and garnished wages. At a moment when many American consumers cannot afford to pay for basic necessities as a result of the COVID-19 emergency, having reduced wages garnished can be devastating.

What to Do About Medical Debt Collection During the COVID-19 Emergency
If you have hospitals or debt collectors contacting you or taking action to collect medical debt, do you have any options? If the hospital is contacting you and the bill is from a recent service, some of the charges may actually be covered by your insurance. You can contact your insurance company to go over the details. You may also be able to negotiate with the hospital about some of the costs. In most medical bill cases, the hospital or other healthcare provider will be willing to work out a payment plan.

When medical debt is much more than you can pay, filing for consumer bankruptcy could be an option to consider. Filing for Chapter 7 bankruptcy may allow you to have all of your medical debt discharged. If you file for Chapter 13 bankruptcy instead, you could develop a repayment plan for your medical debt (and other eligible debt) to repay over a period of three to five years, after which point remaining eligible debt can be discharged.

Contact a Bankruptcy Lawyer in Oak Park
If you have questions about handling medical debt or filing for consumer bankruptcy, an experienced Oak Park bankruptcy lawyer can speak with you today. Contact the Emerson Law Firm for more information.


See Related Blog Posts:
Reasons Why Filing for Bankruptcy Sooner Could Benefit You in the Long Run
What is the Difference Between Discharged Debt and Canceled Debt?

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