Laws Pertaining to Medical Debt

Understanding your out-of-pocket medical costs, including deductibles, is crucial for managing your healthcare expenses. This is what you need to know about your health insurance deductible and its function. Insurance companies share the cost of your medical care through various methods, one of which is the inclusion of a deductible in your health insurance plan.

-According to the FDCPA, a “debt” is defined as “ any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance or services, which are subject of the transaction, are primarily for personal, family, or household purposes, weather or not such obligation has been reduced to judgment “sec.803.15 U.S.C 1692 a(5) the following are considered debt.
Hamilton Vs UnitedHealthCare of Louisanna. INC. 610F.3d385 5th cir.2002- where a subrogation claim arising from consumers transaction of purchasing insurance was a debt within the coverage i.e deductible
An eastern District of Pennsylvania decision rejected a debt collectors contention that a medical bill was not a debt because it should have paid be the patients insurance carrier. Adams Vs law Offices of Stuckert & Yates, 926 F. Supp.521,526 (E.D. Pa.1996). “Mr Adams was the party ultimately liable for retiring the debt. Whether he retired the debt with funds from his checking acct. Or Pursuant to his contract with the health insurance carrier is of no moment.”