Should hospitals charge interest on unpaid accounts?

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Specializes in ER, Ortho, Neuro, Med/Surg. oncology.

I recently learned that my hometown hospital sent out a notice to former patients informing them that the hospital "has recently adopted a new policy and will now be charging 8% interest on accounts more than 12 months old" even if the patient makes regular monthly payments.

Hmm.... in a country with an upcoming election with one of the hottest topics being the lack of health insurance coverage for millions, do you feel being charged interest by a hospital is reasonable? Granted, business is business.... but it just doesn't feel right to me! Do you believe an interest rate will encourage people to pay their medical bills in a more timely manner? Help me to figure this one out, please! :uhoh3:

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Specializes in RN- Med/surg.

No- I don't think so. BUT- prabably because I've been there. You can't help needing to go (most of the population)...and then you get hit with a huge bill. If the balance is there 8 months later...It's prabably because they already have trouble paying it. Adding interest won't help.

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Specializes in Case Management, Home Health, UM.

If you think this is bad, read about what happened to these people who couldn't pay their medical bills:

http://www.consumerlaw.org/issues/medical_debt/content/medicaldebt.pdf

Another good reason for healthcare reform. :o

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Specializes in MPCU.

and another good reason for a "health care reform" forum.

Charging interest to people who cannot afford the principle is not going to help the hospital's collection efforts. They may gain another benefit but I don't remember enough from my accounting classes to hazard a guess.

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Specializes in CNA, EMT.

I think people should be allowed to demonstrate on paper that they cannot pay the bill before interest is it accrued.

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It is absolutely ridiculous to charge interest to a person's bill who obviously doesn't have insurance or enough insurance coverage! Yes I know hospitals are a business but it is a unique business. Our ENTIRE healthcare system needs a drastic overhaul!

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Specializes in FNP, Peds, Epilepsy, Mgt., Occ. Ed.

I know that there are people out there who will pay their medical bills if and only if they have money lying around after paying for "necessities" like hair, nails, cell phones, cable, and so forth. People who, for whatever reason, have the notion that they should never have to pay anything for their own health care.

I think, however, that if someone is making an honest effort to pay their bills, even if they are only paying a small amount, leave that person alone! Don't harass them by charging interest or by any other means. Even $10 a month is better than nothing!

Years ago my son, who was an infant, ended up very sick and in a hospital for a week. I had dropped to a prn position at work and dropped my insurance. We thought we had other insurance lined up and that we had already paid the first premium. It turned out that we had been dealing with a less-than-honest agent and we were not covered.

We were also a couple of hundred miles from home visiting relatives.

When my son was discharged, my husband talked with the hospital business office and arranged to make a small payment every month, which was all we could afford at the time.

What I've never forgotten was not only the good care we got at that hospital, but the fact that they never once hassled us in any way to pay the bill off. We made the monthly payment, they sent us a monthly statement. They never threatened to turn us over to collections or pressed us to pay more.

IIRC, my son was in preschool when we were finally able to pay off the balance with a bonus check my husband got.

Adding interest to that would have probably made it much more difficult for us.

Don't make things more difficult for the folks who are trying!!

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