Medical Debt Collection in Illinois

Federal and state laws protect Illinois residents from excessive hospital bills and abusive medical collection tactics. Due to a pattern of unfair medical collection practices in the state, the Illinois General Assembly enacted the Fair Patient Billing Act in 2007. In addition, the federal Fair Debt Collection Practices Act regulates communications from all types of debt collectors, including those representing hospitals and doctors.

Basic Rights

The Fair Patient Billing Act pays special attention to uninsured people. Under the Act, hospitals cannot legally turn bills over to collection agencies simply because a patient cannot pay. Hospital staff members must inform the patient of charity care programs and installment payment possibilities. If a patient refuses to apply for such programs or discuss the situation with hospital billing representatives, then the account can go to collections.

Billing Rights

All hospitals in Illinois must follow a specific billing protocol, especially when dealing with uninsured or underinsured patients. They must provide details of all charges assessed and attempt to reduce them for the needy whenever possible. Repayment plans must take into account the patient's income level as well as outstanding debts and basic living expenses.

Collection Letters

Once the account is turned over to an outside collection agency, the hospital staff members will likely stop communicating with the patient. Under the Fair Debt Collection Practices Act, medical collection agencies cannot legally communicate with Illinois residents by postcard. They also cannot place information on the outside of the envelope that makes it obvious that the letter comes from a collection agency. Collection representatives are barred from reporting details of medical problems on credit reports and must always disclose they work for a medical collection agency when writing to patients. They also must inform the patient that he has the right to dispute the debt.

Collection Calls

Medical collections representatives cannot legally call a patient repeatedly. They also cannot call outside the hours of 8 a.m. to 9 p.m. Illinois time unless the patient requests it. Collection agents cannot discuss the case with others, nor can they use abusive language, make threats or calls the patient names. If the patient asks the collection agency to not call her at work, they must comply. Also, Illinois patients have the legal right to demand the collection agency stop all calls; it is best to exercise these rights in writing and send the letter through a traceable mailing method such as certified mail.