Beware of New Collection Rule When Billing

Estela Vargas, CRDH, CEO Remote Sourcing

March 30, 2023: Reporting of Medical Debt

Reporting of Medical Debt:  The three major credit bureaus (Equifax, Transunion, and Experian) will institute a new policy by March 30, 2023, to no longer include medical debt under a dollar threshold (the threshold will be at least $500) on credit reports. Such medical debts under that threshold will never be reported, even if unpaid and even if in collection.

Anyone involved in collecting medical/dental debt (deferred payment) must be aware of law changes. Unpaid dental bills cost dental practices thousands of dollars. Not only the balance on the account but the costs of statements, stamps, phone calls, and time chasing the debtor.

 Studies also suggest that patients who have unpaid accounts won't return to the practice for needed services and preventive care. If the patient is not dismissed from the practice, they are still a patient of record and must be seen in an emergency. To justify non-payment, some patients may report dissatisfaction on social media. Patients must understand and agree to your payment options before deciding on treatment.

Eliminate the number of unpaid accounts by establishing a written estimate and a written financial arrangement that the patient signs in agreement.

In the past, an account past 90 to 120 days with no contact from the patient was considered for turning over to an outside professional collection agency. The fear of a bad credit report was enough to get a patient or guarantor to respond immediately. It was an incentive to pay the bill. The new law will set a threshold of 500 or more before an account can be reported on a credit report.

If you need help establishing a financial arrangement document, we can secure that and take over billing your accounts, freeing up your team for more positive patient interactions.