New Smyrna Beach,Fla.,None — Hospitals are taking legal action against thousands of local patients, collecting more money after their insurance paid. Candace Collins suffered a neck injury in a car accident. Her husband, John, was with her for treatment at Bert Fish Medical in New Smyrna Beach. "We asked did we owe anything and they said insurance would cover it all."
Her insurance paid the negotiated rate to settle her account. But the hospital still filed a twenty-one hundred dollar lien against Candace. It's a claim against any possible injury settlement to collect "premium" charges beyond what insurance paid. It's also a legal document that suggests you did not pay your hospital bill, even when you don't owe a dime.
(Todd Ulrich) "Did it make you look like a deadbeat?" (John Collins) "Yes it upset me."
Action 9 found more than 2 thousand liens against victims by local hospitals since 2009, in 8 Central Florida counties covered by the hospital lien law. It was a law passed 50 years ago to protect hospitals against patients who came through the ER without insurance. But we found more than half are filed against patients who have insurance.
"The lien is totally unnecessary." Attorney Brett Bressler says hospitals are abusing liens normally used against people who don't pay. And they do real financial harm when you apply for loans or jobs. "It gives the impression that the person owes the hospital money, a whole lot of money."
Many liens remain long after the hospitals collected and you may have to hire an attorney to remove it. Brooke McDonald had no idea a hospital had filed a 45 thousand dollar lien against her until we told her, stunned that a hospital could mess with her credit since her bills were paid. "I'm at a loss for words."
Bert Fish Medical and other hospitals say they want to make sure no one collects insurance settlements then doesn't pay. But critics say hospitals are going for "bonus" payments by snatching a patient's jury award for pain and suffering.
"And then I was victimized twice, with this lien," said Candace Collins.
Two South Florida courts have found the liens were not valid if the patients had insurance. Osceola county hospitals are not covered by the lien law.