Legal Question in Credit and Debt Law in Florida
medical billing and the fair debt collection practices act.
Our company provides a service for hospitals where we bill and rebill insurance on problem accounts. We never bill the consumer. If the consumer owes the balance or any part thereof the account is returned to the client. Are we subject to the fair debt collection practices act. or would we be exempt under section 803 (6) (f) (iii)
2 Answers from Attorneys
Re: medical billing and the fair debt collection practices act.
You are billing the insurance company which is an agent of the consumer/debtor. You are an agent of the the creditor. It is clearly a consumer credit transaction. If there is any doubt as to whether to comply, I suggest you do. As you see, it can be interpreted as above and therefore your failure to comply, which is a nominal expense item, has the potential to be costly.
Re: medical billing and the fair debt collection practices act.
Laws are subject to interpretation. Since the insurance company is not a consumer I do not think the act would apply. Until there is legal authority one way or the other play it safe.
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