Usury Laws, Collection/Late Fees, Interest Rates

[Guest guest]

I'm sure this might vary by state, but...

Anyone have good info on what is allowed to be charged for overdue medical accounts?

It seems that an interest rate is allowed -- although it is probably based on usury guidelines, etc.

Obviously, my credit card company knows the rules on what can be charged.

My attorney has a comment at the bottom of the invoice about 18% charge.

Charging interest makes some sense, but then you have to figure up the %'s and if you compound, you need to refigure it each month, etc.

It makes sense in that it is basically a loan to the patient when they don't pay you.

A simpler way would be a late fee or collection fee each month, but some have suggested one of these isn't allowed legally.

But just adding on a dollar or 2 each month would be simple enough as a fee to start covering the cost of having to rebill.

One article suggested you could do a lot of things as long as it was signed in a contract.====================================================

Feb 15, 2008

By: Lowes

Medical Economics=======================================================

But, again, the issues are confusing on what is legal.

Complicating the matter in my mind is the the complicated way we get paid with insurance.

It's often 1-2 months before we really know what the patient owes.

It's not like the patient is seen in March, invoice sent in April, and if they don't pay by May's invoice, you can just start adding a fee.You often don't know what they owe until May -- so I guess you shouldn't fine them until then.

Anyway, what legal things have you found in regards to these fees and how much do you charge?

Thanks

Locke, MD