r2i forum

Sorry to hear about your friend's plight. I hope he recovers soon and is self sufficient in the near future.

Now on to your questions.

Each state in US has consumer bureau and can assist the in-state residents in avoiding filing bankruptcy and can give suggestions for bill payments etc. Search your state's agencies.

In reducing the bill payments, there are multiple options. Few of them I can think are:

1.Write a letter to the hospital detailing the financial situation(along with records) and the inability to pay such high bill.Usually hospitals charge 80-20 ratio thinking 80% will be paid by the health insurance but if patient has to pay 80%, the billing comes down in many cases as much as 50-60-80% of the bill.
2.Restrict health care providers from using common law doctrines to collect medical debts from spouses of patients, especially when these spouses are elderly or low-income.Some states like CA,MA and Texas already has these reforms. Find out whether your state has these reforms.
3.If option 2 isn't there,don't avoid paying collection agencies all together as it affects the credit history. Pay minimum amount to the collection agencies like $50-$100 per month. If one does not have the ability to pay more, collection agencies usually will not sue and will wait for settlement. Even if they do, case goes to credit court,and courts usually listen to both side's arguments and allow to settle and that time if the hospital has reduced the fees substantially, it may help to have the settlement.

I hope you hear from other well informed members as well.

my 2c

Check your PM.

If all else fails, talk to an attorney and file bankruptcy. It will screw up the credit history, but they can rebuild their life. I know one person (white guy) who did this, but he didn't have any other option. 7 years later, he's fine and his credit history is back.....

hope this helps.

Thanks for the replies.
We spoke to a social worker and she is of the opinion that we should contact an attorney.At this point we have decided to keep all the options open and contact an attorney through 1-800-Attorney.I think future course could emerge once we get to speak to an Attorney

I am assuming that considering the situation that your friend is unable to pay. It is interesting to note that even hospitals in network may charge say X to the insurance, but if the patient has no insurance their charges may be 2X. This is highway robbery.

In addition, insurance companies may actually pay X to in network but may actually pay less than X to out of network which is another stupid thing for which insurance companies should be sued.

Some options that come to my mind.

1. If he is going to go to India, and they are unwilling to settle, then string them along till house is sold and leave USA which is what you say they want to do and leave the hospital hanging. Yes, eventually, it gets paid by the resto f the hospital patients in increased charges.

2. Send them a written offer to settle. Explain very briefly that you have no choice but to declare bankruptcy and are unable to pay the bill and collecting disability at present (whih I am guessing that your friend is). To avoid bankruptcy, you are willing to settle with the hospital for $1000, which the money will be lent to you from friends and you will manage to pay that back somehow. Send this offer in writing.

3. Send them an offer in writing that you can offer to pay $100 a month and that is the best you can do. Ask them if they are willing to go ahead with this arrangement and if so, that you will send this to them. Do not sign an agreement to this that ties you to this payment for longer than say 3 years or so.

Or variations of above.

Once the hospital realizes that they either accept the offer or get nothing, they will probably settle but they need to be convinced that there is nothing there for them to go after and that bankruptcy would not even get them the $100 or $1000.

You also should send this to billing office, director of patient billing and call them and ask them that you plan to send a letter to negotiate costs and who is the decision maker to whom this should go to.

Filing bankruptcy may be a choice here. Lot of assets are protected under federal and state laws.

Federal law: All of the retirement accounts (401K, IRS, etc) are protected.
State law: NJ allows some protection. http://ezinearticles.com/?NJ-Bankruptcy-Law&id=681809

Do more research on what is protected.

Any asset that is not traceable (Personal property, jewelry, cash, etc.) can be safely transfered to trusted relative/friend or to India WITHOUT using banking channels.

Any traceable liquid assets (bank balance, brokerage, etc.) may not be saved from bankruptcy. If you can try to liquidate them but creditors will find out.

If the traceable assets are more than the bill, then your friend should just liquidate everything he has QUICKLY. Take all the cash with him in person (no banks) and move to India without worrying about bills or bankruptcy.

I know I am giving advise that is not ethical but so is the medical bill.

I hope this helps your friend.

I dont know whether this is relevant or may help but I once recieved a bill from one of my in-network doctors for 18K and it was negotiated by my provider to 1.8K . ..i had to pay 10% of it and I got off with USD 180. I read this all in the final statement and was surprised to see the reduction in the total cost after negotiation. Do you think the provider can negotiate with the hospital even if it was not in network

Hope this helps.

OP:

Check this out...

http://online.wsj.com/article/SB120580305267343947.html?mod=yahoo_free