The HIPAA (Health Insurance Portability and Accountability Act) Privacy Rule mandates that your private healthcare details may not be shared unless there is an allowable cause for doing so. HIPPA extends to credit reporting companies and collection businesses as well. For people, HIPPA actually assists in dealing with delinquent medical collection accounts and can be a vital part of the credit repair course of action.
There is an interesting dynamic when the rules of health-related records (aka HIPPA) are applied to the Fair Credit Reporting Act. Just about every set of guidelines compliments each other in a manner that permits you to pay off the late health-related invoice with the healthcare provider and then pressure the collection agencies to close the account and the credit reporting bureaus to remove it from your three credit reports. The steps are precise and must be done in order, but with the suitable facts and help, you can have all of your health care collection accounts removed from your credit reports.
Effectively, once the debt has been paid to the medical provider, neither the collection organization, nor the credit reporting businesses can access the information according to HIPPA because there is no lawful right to the info since it has been paid. The health care provider is unable to make available any data because it is a matter of your health care records, not an outstanding debt.
To start with, you alert the health care provider that you are opting out of sharing data with credit reporting companies and all collectors, via certified mail. Then you pay the health care provider in full, which under HIPPA, forces the medical provider from turning over the payment to the collection group, nor reporting the debt on their credit report.
Lastly, you send a letter to the credit-reporting outfit, asking them to verify the fine points of the debt, which under the Fair Credit Reporting Act is a requirement. Since the debt has been paid in full, the medical provider is powerless to provide any information. The collection outfit must also comply because they are unable to verify the data and because it is no longer a debt that they are allowed to collect.
This is a primitive overview of the process, but it is a sure fire means of removing medical collections from your credit report. You do not need to pay a credit repair corporation to do the above steps for you and doing so is perhaps a waste of your money. Instead, use a far-reaching ‘do it yourself’ credit repair system, that offers detailedcommands, different dispute letters particular to HIPPA and continuing aid to guide you through the procedure. Credit repair companies will aim to charge you up to $500 per entry, whilst you can do it yourself for a few hundred dollars.