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When Medical Debt Collectors Decide Who Gets Arrested


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2020 Feb 11, 7:29pm   405 views  3 comments

by Patrick   ➕follow (55)   💰tip   ignore  

https://features.propublica.org/medical-debt/when-medical-debt-collectors-decide-who-gets-arrested-coffeyville-kansas/

The first collector of the day was also the most notorious: Michael Hassenplug, a private attorney representing doctors and ambulance services. Every three months, Hassenplug called the same nonpaying defendants to court to list what they earned and what they owned — to testify, quite often, to their poverty. It gave him a sense of his options: to set up a payment plan, to garnish wages or bank accounts, to put a lien on a property. It was called a “debtor’s exam.”

If a debtor missed an exam, the judge typically issued a citation of contempt, a charge for disobeying an order of the court, which in this case was to appear. If the debtor missed a hearing on contempt, Hassenplug would ask the judge for a bench warrant. As long as the defendant had been properly served, the judge’s answer was always yes. In practice, this system has made Hassenplug and other collectors the real arbiters of who gets arrested and who is shown mercy. If debtors can post bail, the judge almost always applies the money to the debt. Hassenplug, like any collector working on commission, gets a cut of the cash he brings in.


Medical billing is THE main thing wrong with America these days.

All bills should be presented in advance of treatment.
All medical prices should be listed in a standardized format to make comparison shopping easy.
Attempts to price-fix in medicine should aggressively prosecuted.

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1   AD   2020 Feb 11, 7:40pm  

Yes, a lot of the complexity is a function of the medical overhead or fixed costs which are factored into the medical billing.

There should be a better way other than hauling the debtors in court every 3 months. That seems excessive and counter to due process.

Maybe have them present their case before third party arbitration instead of the courts every year, which coincides with the filing of the household's income tax reports.
2   MisdemeanorRebel   2020 Feb 12, 8:42am  

Patrick says

All bills should be presented in advance of treatment.


Pricing reveals start January 1st, 2021.

The final rule will require hospitals to make their standard charges public in two ways beginning in 2021:

Comprehensive Machine-Readable File: Hospitals will be required to make public all hospital standard charges (including the gross charges, payer-specific negotiated charges, the amount the hospital is willing to accept in cash from a patient, and the minimum and maximum negotiated charges) for all items and services on the Internet in a single data file that can be read by other computer systems. The file must include additional information such as common billing or accounting codes used by the hospital (such as Healthcare Common Procedure Coding System (HCPCS) codes) and a description of the item or service to provide common elements for consumers to compare standard charges from hospital to hospital.
...
Display of Shoppable Services in a Consumer-Friendly Manner: Hospitals will be required to make public payer-specific negotiated charges, the amount the hospital is willing to accept in cash from a patient for an item or service, and the minimum and maximum negotiated charges for 300 common shoppable services in a manner that is consumer-friendly and update the information at least annually.
Shoppable services are services that can be scheduled by a healthcare consumer in advance such as x-rays, outpatient visits, imaging and laboratory tests or bundled services like a cesarean delivery, including pre- and post-delivery care.

The requirements for the consumer-friendly file are that the information must be made public in a prominent location online that is easily accessible, without barriers, and it must also be searchable. Item and service descriptions must be in 'plain language' and the shoppable service charges must be displayed and grouped with charges for any ancillary services the hospital customarily provides with the primary shoppable service.

In order to ensure that hospitals comply with the requirements, the final rule provides CMS with new enforcement tools including monitoring, auditing, corrective action plans, and the ability to impose civil monetary penalties of $300 per day. In response to public comments, CMS is finalizing that the effective date of the final rule will be January 1, 2021 to ensure that hospitals have the time to be compliant with these policies.

https://www.hhs.gov/about/news/2019/11/15/trump-administration-announces-historic-price-transparency-and-lower-healthcare-costs-for-all-americans.html
3   Patrick   2020 Feb 12, 9:02am  

It's a good start, and I praise Trump for it!

But it needs to apply to all medical care in the US.

And $300/day is nothing compared to what hospitals bring in by hiding prices. There will be a lot of non-compliance.

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