Can a Collections Agency Collect For Bills Related to My Workers’ Comp Claim?
When a workers’ compensation carrier denies an injured worker’s claim for compensation, the injured worker may pay for their medical care through private insurance, Medicaid, Medicare, or even foot the bill themselves. On occasion, injured workers lack insurance and cannot pay for treatment out of pocket. Medical providers will then send unpaid bills to debt collectors, who will pursue repayment on their behalf.
If you treat for injuries related to your workers’ compensation claim and those medical bills are turned over to collections, you will not be responsible for repayment until your case is either settled or tried, so long as you follow Neb. Rev. Stat. § 48-148.02.
How Do I Know There Are Collections on My Case?
You will receive a physical letter from a debt collector in the mail. This letter, also called a notice, will include the following information:
Your name, address, and contact information
The debt collector’s name, address, and contact information
The account number and corresponding debt
Debt balance owed
An outline of your rights
Information on how to pay your debt
Are Nebraska Workers’ Compensations Proceeds Collectable While My Case is Still Pending?
It depends. If you have an active workers’ compensation case pending in the Nebraska Workers’ Compensation Court, a debt collector cannot collect on any debts associated with your work injury if you put them on notice of your case.
Once you file a petition in the Nebraska Workers’ Compensation Court, you need to file a written notice of your pending case with the debt collection agency. That written notice must include specific pieces of information to protect you from having a debt collected on you while your case is still pending.
Nebraska Statute § 48-148.02 outlines the information you must provide to the debt collector. This notice must be in writing. If multiple debt collectors are trying to collect from you, you must send a notice to each. Once the debt collector has received this notice of your pending workers’ compensation case, the collections lawsuit is “stayed”. In other words, the debt collector cannot try to collect on your debt until either (1) the final adjudication by the workers’ compensation court or (2) the case settles outside of court.
How Do I Inform a Collections Agency that I Have a Pending Workers’ Compensation Case?
Send a Letter! The letter from the debt collector will include a phone number to contact the collections agency and a claim number. However, calls with a representative at these facilities are recorded, and any communications made to them can be used for purposes of collecting the debt. Best practice is to send the written notice and only communicate with the debt collector in writing to create a paper trail.
Under Nebraska Statute § 48-148.02, the written notice must include:
The Provider’s name
The Injured Worker’s name
Date of Injury
A description of the injury
The filing date of your petition in the Nebraska Workers’ Compensation Court
The Case and Docket Number of your case in the Nebraska Workers’ Compensation Court
A sample letter is provided below. The statute requires you either deliver the written notice in person to the debt collector or send it by mail. Be sure to document or keep a receipt of delivery!
Attorneys at Rehm Law Firm are highly experienced in handling collections matters, in addition to workers’ compensation cases. For help with navigating this, please contact an attorney at Rehm Law Firm.
