One of the other main uses of the medical collections agency is to negotiate settlements. A collection agent may work with the patient and their insurance company to get the patient to accept a reduced amount or payment plan. In many cases, these agencies are able to get the patient to settle the amount they owe by taking a percentage of the total balance owed.
Medical Collections – How they will handle your claims
Some medical collections agents also work with banks, lenders and credit card companies to get the balance owed back. This helps both the patient and the collection agent because it reduces the amount of money the patient has to pay back to the creditors.
There are a few other ways a collection agent can use their resources to recover payments. They may try to contact the person directly to try and get the debt transferred to the patient. If that doesn’t work, the collection agent may also use the services of collection companies that work with insurance companies to collect the amount owed.
The collection agent will typically need to make sure that the agency is licensed to legally operate within their state. In most states, these agencies are required to be registered with the state and pay a registration fee if they intend to operate. These fees can range from under a dollar to several thousand dollars, depending on how advanced the collection agency is in the process.Read More