Hours of phone calls to insurance and hospital later, we think we have it resolved but are informed it may take up to 6 weeks to process. Fine, we wait six weeks. Hospital starts threatening to send us to collections for non-payment. Hours of phone calls later it turns out they were waiting on information from insurance that they never received. So six phone calls later we think we've gotten it all sorted out. This time people actually follow through, hospital switches our payment to pending and that's the last we heard of it. Got confirmation that insurance paid out several months later.
Again, the hospital messed up the paperwork, but the burden of solving the problem falls on us, with serious financial consequences if we don't. While we're dealing with a newborn no less. There should really be a law that makes institutions liable for such errors.
Also insurance was a little shady as well. The amount of the outstanding bill should have pushed us over our out-of-pocket-max for the year, but when they finally paid out they marked it as an "adjustment". Which means we're still in the coinsurance part of plan. So we're getting deeply discounted healthcare for the rest of the year, but not free. It's not worth the time for us to run down, and maybe they're doing everything in line with the fine print, but it definitely smells rotten.
Does there need to be an explicit law?
Could one sue in small-claims court for the time and expense damages?
I suppose an institution might be more willing to just pay up and be done with it, but if they want to make it costly they very much can, even if the judge immediately sides with you. Often negates what you would have "won", particularly if you factor in time.
Also you have to prove damages, back when we were suing the landlord I brought up throwing on lost wages for the time I had to take off work to deal with the illegal stuff we were suing over, and our lawyer said "yeah we can try but it's unlikely the judge will award that because you weren't forced to take that time off". There's all sorts of gotchas like that.
That experience really opened my eyes to how the system really does screw the average person. I'm upper middle class and extremely well educated, so is the rest of my family who were supporting us throughout. I can't imagine how someone making the median salary who reads at a 5th grade level would navigate it. That's probably what said scummy landlord was counting on and why he settled when it was clear we weren't easy targets.
The system serves the common man reluctantly at best. Justice is a luxury good.
It's basically insane that we require individuals to sign a blanket billing authorization prior to receiving care. Perhaps the hospital should have to provide a maximum amount that is at risk (hopefully creating pressure to operate in a sensible way).
Some very clever people have architectected an effective scam to prevent the democratic system from solving this. And I'm not referring to a republicans vs democrats debate about free socialized care vs hands off privatization. I'm talking about little steps that chip away at the problem like the one you described. Or forcing them to pay first, and only later have a debate about it. Or holding insurance liable for injury resulting from denying coverage. There is plenty of room for improvement and yet the representatives manage to accomplish nothing along these lines.
https://lawandcrime.com/lawsuit/borders-on-the-absurd-dead-w...
(volunteer patient advocate)
My dad passed away from cancer over 20 years ago, and this was Aetna's plan even then. Each claim followed the exact same process of deny, approve but pay only pay a fraction, and then finally pay the correct amount. Literally every single claim. My mom built an automation in Excel to track the calls for each claim and to prompt her at the various time intervals required to follow up at each phase.
Personally, I experienced this went I went to the ER with acute abdominal pain and ended up having emergency surgery within a few hours. Naturally, Aetna tried to deny that my ER visit was an actual emergency. On the phone with the rep, I asked them if they new of any non-emergency situations where someone was able to have a surgery scheduled only 4 hours in advance. They agreed that it was an emergency and promptly paid $8k of the $16k bill. After another call several months later, they paid all but $800.