How do you negotiate with a collection agency?

Probably a stupid question but we got billed for almost $1K when I had Ryan from NICU MD who doesn't take Ryan's insurance
We sort of ignored it b/c we just didn't get how we were responsible for this having no choice in the MD at the time.

Anyway, it went to a collection agency. Now they call my cell all the time. Lovely.

At this point I am just ready to pay the darn thing (even though it kills me) but someone mentioned you can negotiate with these people.

Has anyone done this before? How do I approach them? Do I just call and say, "hey, can I have a discount on my debt???"

TIA

Re: How do you negotiate with a collection agency?

I know in NY State, if you give birth and one of the attending doctors doesn't take your insurance, your ins. co. may pick up the bill. The same thing happened with me my 2nd pregnancy. I had a problem with my epidural. The anethesiologist on call didn't take my insurance and I got a bill from him for 6K. When I contacted my ins co they picked up the tab because when you give birth you have no control over who the attending dr is.

You can always negotiate debt, but probably not with the person calling you. You need to call them (after 1st looking into it with your ins co to see if they will pay) and then ask to speak to a supervisor, and then the supervisors manager, and work your way up until you get what you want.

Re: How do you negotiate with a collection agency?

We've approached the insurance company about it and they won't budge. I never pick up when the agency calls me so I'll def. have to call - thank you!

Re: How do you negotiate with a collection agency?

First check to make sure they haven't placed any marks on your credit report.

Assuming they haven't and you are willing to pay it, just have them put a letter in writing to you that if you pay the bill they will not mark your credit report in any way. If you settle the debt, they may mark your report saying a debt was settled for less than the total amount. That's not great on your credit report.

Then I would continue to go after your insurance company for the money owed to you. Show them the bill from the debt collector. If the insurance company still refuses to pay, sue them in small claims court (and no i'm not kidding).

Re: How do you negotiate with a collection agency?

Re: How do you negotiate with a collection agency?

Maybe they will let you pay less if you pay it all in one shot? I think they would be happy to get it off their books since many of the calls they make no doubt result in people promising to pay and not paying or not answering their calls (no offense - not judging...) Maybe the person calling wouldn't be able to authorize it but they can probably connect you with someone who can. Or give you the name & # to call. Worth a shot IMO

Re: How do you negotiate with a collection agency?

Have you submitted an appeal to your insurance company in writing to their appeals dept? If you haven't done so, you should and file a complaint online with the NYS dept. of insurance. I had numerous problems with bills after DD was born and they were all ultimately paid. The first appeal was denied on every single claim (stand procedure from what I hear), but I submitted a second appeal and all were paid.

Re: How do you negotiate with a collection agency?

Like Summer said I would do an appeal to your insurance. They should pick it up. Also, what is the hospital saying on providing a Dr that was not in your plan. They knew what your insurance was.

Re: How do you negotiate with a collection agency?

I have never gone into collections, but the hospital knocks off a few hundred for me if I pay it all at once.

good luck!!!

Re: How do you negotiate with a collection agency?

Posted by Janice

I have never gone into collections, but the hospital knocks off a few hundred for me if I pay it all at once.

good luck!!!

Re: How do you negotiate with a collection agency?

I know that when we sent some of our customers to collections from my DH business we signed a contract with the collection agency that they could negotiate down to 80% of the bill on their own. Don't know if that helps at all.

Re: How do you negotiate with a collection agency?

I would fight with the insurance company before I did anything that could possibly effect your credit.

Posted by Beth1210

Posted by Janice

I have never gone into collections, but the hospital knocks off a few hundred for me if I pay it all at once.

good luck!!!

I was able to get a bill reduced as well- but this was before collections

I owed $1K and now I only have to pay $140!

Re: How do you negotiate with a collection agency?

I'm pretty sure hospitals don't send a 1099-C.

Re: How do you negotiate with a collection agency?

Message edited 12/3/2008 6:30:26 PM.

Re: How do you negotiate with a collection agency?

Be careful! Collection agencies will tell you that they are recording your conversation, so that its usable in court. So watch what you say. If you admit that YOU owe the debt then you will be responsible for it..not your insurance company.

IF you had your child at a state hospital..it will go to collections first..then if you dont pay it...it will go to a judgement! You dont want that on your credit report.

Sometimes collection agencies just buy the debt from these places hoping they will receive some money from you.

Yes it is true, if you want to clear this up, they will work with you. They will be very annoying since these collection people get huge commissions.