Medical Bills and Your Legal Rights in Skagit County, Washington

The communities you find across Skagit County, Washington, take pride in their small-town charm and close-knit values. If you’re dealing with the challenges associated with medical bills, whether from a Skagit Valley Hospital or one of the local clinics, understanding your rights and options can make all the difference.

Dealing with medical expenses can be overwhelming, especially if they are due to an unexpected illness, accident, or injury. It is essential to know your rights, responsibilities, and potential legal options during this difficult time.

This guide will help you understand your legal standing and when you should seek the help of an experienced Skagit County attorney who is more than familiar with the ins and outs of dealing with a mountain of medical debt.

Medical expenses in Washington have steadily increased due to advancements in healthcare technology and the high cost of medical services. In Skagit County, residents may find themselves struggling to pay for medical services like emergency room visits, surgeries, medications, and ongoing treatments. Out-of-pocket expenses, like the deductible, copay, and costs of uncovered services, can add up even with health insurance.

Car accidents are the leading cause of high medical bills in Mount Vernon, Washington. From emergency care and diagnostic tests to physical therapy and the possibility of long-term care, the costs for a wide range of services can get out of hand quickly.

Workers’ compensation laws in Washington require employers to provide coverage for employees injured on the job. However, disputes can arise regarding the extent of coverage or whether the injury qualifies under workers’ compensation at all.

Slip and fall accidents, dog bites, and other personal injury incidents can also result in substantial medical expenses. Determining liability in these cases is important for recovering compensation for these medical bills.

When it comes to medical debt, you must take the time to understand state laws and know your rights and options. Here are some of the more relevant statutes and regulations for Skagit County residents:

Personal Injury Protection (PIP) insurance is optional in Washington but highly beneficial. It covers medical expenses regardless of who is at fault in an accident.

For personal injury cases, Washington law allows a three-year statute of limitations. This means you must file a claim within three years of the incident to recover compensation for medical bills.

Washington state requires hospitals to offer charity care programs for low-income individuals. These programs provide discounts or complete forgiveness of medical bills for qualifying patients.

Patients are protected from unfair medical billing practices under Washington laws. For example, the

Surprise Billing Protection Act prohibits balance billing for out-of-network emergency services.

If you are overwhelmed by medical bills, there are a few steps you can consider taking to manage your dire financial situation.

• Review Medical Bills Carefully: Medical billing errors are more common than you think. Check for any duplicate charges, incorrect codes, or services you didn’t receive.
• Negotiate With Providers: Many healthcare providers are open to negotiating bills, offering payment plans, or even sometimes reducing the total amount owed if you demonstrate financial hardship.
• Use Insurance to Its Fullest Extent: Ensure that your insurance company has been billed correctly and that you have used all your available benefits.
• Seek Legal Advice: When medical bills result from an accident or someone else’s negligence, consulting a Washington attorney can help you recover compensation and protect your rights.

Unpaid medical bills can create a ripple effect, impacting every aspect of your financial life. Missed payments can result in:

• Debt Collector Harassment: Medical providers often sell unpaid accounts to collection agencies.
• Damaged Credit Scores: Medical debt reported to credit agencies can lower your credit score and make it harder to secure loans or housing.
• Legal Consequences: Creditors can file lawsuits to garnish your wages or seize assets.

While your health insurance can help with some of the expenses, it often fails to cover all the costs. Many plans come with higher deductibles, limited networks, and even coverage gaps that can leave you responsible for huge out-of-pocket expenses.

Bankruptcy is a legal process designed to help you eliminate or restructure your debts. In Washington state, there are two main types commonly used for medical debt: Chapter 7 and Chapter 13.

With a Chapter 7 bankruptcy, non-exempt assets are liquidated to pay your creditors. It’s a quicker process that allows you to discharge most if not all of your unsecured debts, including your medical bills.

On the other hand, Chapter 13 bankruptcy is a repayment plan option that allows you to pay your debt over a three to five-year period. This is suitable if you have significant assets you want to keep.

Yes, medical bills are considered unsecured debt because they aren’t tied to any kind of collateral. This makes medical debt easier to discharge in bankruptcy compared to secured debts like your mortgage or car loan.

Washington offers certain exemptions to protect some assets during bankruptcy proceedings:

• Homestead Exemption: Protects equity in your primary residence up to $125,000
• Personal Property: Includes household goods, clothing, and vehicles up to certain limits
• Wages and Public Benefits: Covers Social Security, unemployment benefits, and retirement accounts

Residents of Skagit County typically file for bankruptcy through the US Bankruptcy Court for the Western District of Washington. This is what the process is like:

• Step 1:File a petition that includes detailed financial information about your debts, assets, income, and expenses.
• Step 2: Complete an approved credit counseling course, which is a requirement before you can file.
• Step 3: A trustee will review your case and the creditors can ask questions during a meeting.
• Step 4: Depending on the type of bankruptcy, debts are either discharged or restructured.

In Washington state, the statute of limitations for medical debt is 6 years, as outlined in RCW 4.16.040. This means that creditors have 6 years from the date of your last payment or the date the debt became due to file a lawsuit.

Certain actions can reset the statute of limitations. For example, making a payment (even a partial payment) can restart the six-year period. Confirming the debt in writing or negotiating a payment plan can also reset the clock on medical debt.

The Washington Collection Agency Act regulates debt collection agencies operating within the state, with provisions designed to protect you from unfair or deceptive practices. This law states that all debt collectors must be licensed to operate in Washington, are prohibited from harassing or threatening you, and must provide you with clear information about the debt, including the amount owed and the original creditor.

The ACA includes provisions that are aimed at reducing medical debt. Hospitals receiving federal funds must offer financial assistance policies. Providers are also prohibited from taking extraordinary collection actions, like lawsuits or wage garnishments, without first making reasonable efforts to determine if you qualify for financial assistance.

H.R.6003 or the Medical Debt Relief Act of 2023 is a federal law that introduces additional protections. These include making the credit bureaus wait 365 days before reporting any medical debt and removing paid medical debt from credit reports.

Washington hospitals are required to provide charity care to lower-income patients who meet certain criteria. If you earn less than 300% of the federal poverty level, it may qualify you for free or reduced-cost care, which hospitals must inform you of.

This is a state law put in place to protect you from unexpected medical bills, especially those you get for out-of-network care. You are only responsible for in-network cost-sharing amounts, and any disputes between providers and insurers must be resolved through arbitration and not billed to you directly.

When dealing with medical debt, you want an experienced bankruptcy attorney in Skagit County on your side. They can evaluate the situation and determine if bankruptcy is the right solution for your financial situation.

Your attorney can guide you through the process while ensuring all the paperwork is completed accurately and filed on time. They also advocate on your behalf during meetings with creditors and in Skagit County Court proceedings.

Understanding the laws and statutes in Washington can help you protect your rights and give you the chance to explore all the options available to you to get out of mounting medical debt. So, if you are struggling with medical debt, consult with an attorney to explore your options and regain financial control.