Paying Medical Bills for Dead People?

[findingdeadbeats]

I thought of this based upon a comment on the student loan thread, as well as from reading a woman's comments on another message board.

In the latter instance, the woman is paying off over $150K in medical debt for her adult son who died after receiving a ton of expensive medical care. None of the debt is in her name and her son was in his mid-20s when he passed. This woman was posting because she was losing her house and contemplating filing bankruptcy but planned on continuing to pay the medical debt back anyway, over save for her own retirement or pay for her own living expenses... because "it's the right thing to do."

Would you continue to pay for services received if your loved one died even though you are not legally responsible for them?

[deantrip]

No I wouldn't, in some cases I truly believe that debt should die with the debtee or it should.

[findingdeadbeats]

Her thought was that the doctors and hospital did everything they could for her son and that it wasn't right to stiff them on the payment. I think there is some good ideal behind that, but that for most people (her included) it just wasn't practical or possible to pay them back.

[shanendoah]

No, I wouldn't.
This is what probate is for. And once the estate is broke, the estate is broke.
If a a biller (any biller) is harassing someone who has no legal responsibility to pay the money, they should get a lawyer and get it taken care of.
There is no way this woman's adult son wanter her to risk her future in order to pay his medical bills.

[swamp]

May 11, 2012 12:47:35 GMT -5 @findingdeadbeats said:

I thought of this based upon a comment on the student loan thread, as well as from reading a woman's comments on another message board.

In the latter instance, the woman is paying off over $150K in medical debt for her adult son who died after receiving a ton of expensive medical care. None of the debt is in her name and her son was in his mid-20s when he passed. This woman was posting because she was losing her house and contemplating filing bankruptcy but planned on continuing to pay the medical debt back anyway, over save for her own retirement or pay for her own living expenses... because "it's the right thing to do."

Would you continue to pay for services received if your loved one died even though you are not legally responsible for them?

Does she realize she can't discharge this debt in bankruptcy because it's not her debt? Or, if she's racking up her own debt to pay her son's debt taht she's not legally obligated to pay, well, that's just dumb.

The estate is insolvent, the debt is uncollectible. End of story.

[greenstone]

No, mainly because of the ridiculous way medical costs are determined. I completely disagree that paying patients are charged more to cover the cost of non-payers. I also disagree that with paying to cover exorbitant malpractice insurance. The bills are padded in so many different ways that you are not just paying for the actual care and services you received so I don't feel the whole "it's the right thing to do" guilt. I may have no choice in paying for my own medical care but I won't pay that bs for someone else's.

[Deleted]

No, i wouldn't pay someone else's debt if they were deceased.

[The Walk of the Penguin Mich]

May 11, 2012 13:02:54 GMT -5 greenstone said:

No, mainly because of the ridiculous way medical costs are determined. I completely disagree that paying patients are charged more to cover the cost of non-payers. I also disagree that with paying to cover exorbitant malpractice insurance. The bills are padded in so many different ways that you are not just paying for the actual care and services you received so I don't feel the whole "it's the right thing to do" guilt. I may have no choice in paying for my own medical care but I won't pay that bs for someone else's.

But you will be the recipient when you are old enough to have Medicare. Currently, not only are you paying for the non-payers and malpractice insurance, those of us with insurance as also paying for those whose Medicare and Medicaid pay a fraction of the true costs.

[quotequeen]

I might pay it if I could afford to. I certainly wouldn't risk losing my house over it. Why doesn't she just make smaller payments?

[Peace77]

My friend is paying on her deceased husband's medical bills. She could empty out his money market account and pay it off but the hospital is willing to accept $75 per month. The ambulance and other misc. bills have been paid.

Yes, they did all they could but there is no way my friend would skip paying other bills, especially her mortgage. Someone needs to set that mother straight.

[Deleted]

If she really wants to pay *something*, she should at least settle with them for something more reasonable. "Legally I don't owe you jack, but I'll pay you .10 on the $1 because you tried to save my son".

[Sum Dum Gai]

Would you continue to pay for services received if your loved one died even though you are not legally responsible for them?

Oh hell no! When interest rates drop do lenders send me a partial refund check on my fixed rate loans because their cost of doing business just went down and it's the right thing to do? Of course not.

[973beachbum]

May 11, 2012 13:00:39 GMT -5 swamp said:

May 11, 2012 12:47:35 GMT -5 @findingdeadbeats said:

I thought of this based upon a comment on the student loan thread, as well as from reading a woman's comments on another message board.

In the latter instance, the woman is paying off over $150K in medical debt for her adult son who died after receiving a ton of expensive medical care. None of the debt is in her name and her son was in his mid-20s when he passed. This woman was posting because she was losing her house and contemplating filing bankruptcy but planned on continuing to pay the medical debt back anyway, over save for her own retirement or pay for her own living expenses... because "it's the right thing to do."

Would you continue to pay for services received if your loved one died even though you are not legally responsible for them?

Does she realize she can't discharge this debt in bankruptcy because it's not her debt? Or, if she's racking up her own debt to pay her son's debt taht she's not legally obligated to pay, well, that's just dumb.

The estate is insolvent, the debt is uncollectible. End of story.

Isn't this even worse though because it isn't her debt? She is going to end up in BK because she didn't pay bills she legitimately owes while continuing to pay bills she doesn't. If I was a creditor taking a bath I would be pissed.

to answer your question if I had the money I would pay them but if not I would send them a copy of the death cert and estate letter telling them there was no money in the estate to pay them. I would probably put them on my Christmas charity list also but that is it.

[Peace Of Mind]

This is clearly an emotional decision on her part. She probably isn't thinking clearly and may feel she is honoring her son's memory in some way.

I hope I wouldn't do that, but who knows...

[Works4me]

All depends on whether or not she signed as responsible party for her son. Quite often parents of college students and/or young adults will commit to be responsible for the bills of their child. As far as a spouse is concerned, that is a differnt thing and it is no different that any other bill owed by the dead spouse and dependent on state law.

[midjd]

If she really wants to pay *something*, she should at least settle with them for something more reasonable. "Legally I don't owe you jack, but I'll pay you .10 on the $1 because you tried to save my son".

Yeah, that's a good compromise.

I wouldn't pay anyone's debts if I weren't legally obligated. My aunt (retired) is still paying my cousin's SLs (he owed about $25K when he died). I respect her decision but also respectfully disagree. He wouldn't want her to waste her money.

[Works4me]

WOW! Death is one of the few ways to avoid re-payment of student loans and they are one of the few debts that commu nity property states cannot hold a spouse liable for.

ETA - exception for aunt could be if it was the type of loan where she co-signed as his parent. Same thing if spouse co-signs.

A dear friend of mine went back for her PhD at age 50 and jokes her loans my die with her.

[TheOtherMe]

I would not pay for any debts of my parents once they die if their estate will not cover it.

For the kind of money people pay in insurance and then the co-payments, I wouldn't even consider it.

[TheOtherMe]

May 11, 2012 19:54:50 GMT -5 midjd said:

I wouldn't pay anyone's debts if I weren't legally obligated. My aunt (retired) is still paying my cousin's SLs (he owed about $25K when he died). I respect her decision but also respectfully disagree. He wouldn't want her to waste her money.

If your aunt had co-signed with her son, she is legally obligated to pay the loans. Another reason not to co-sign for student loans.

[findingdeadbeats]

The woman in question clearly understood that she had not signed for the medical treatment and was not legally responsible for the debt. I think it's nuts, and posted that in response to her message that doing the above was sending her into bankruptcy.

Her point was that the doctors/hospitals/etc... did their job and deserved to be paid even through her adult son had ultimately died.

[Deleted]

Unless she signed to be financially responsible for treatment she should not pay. However in the end it is her choice and if she chooses to bankrupt herself for her ethical beliefs, then that is her option.

I don't understand the co-signer Student Loan statements. I think it is a myth that the cosigner still has to pay. The contract is clear that the loan is discharged in the event of death. I'd be interested in knowing the real facts on that. If my DD died, her student loans would be extinguished, but I'd still be obligated for the Parent loans because they are loans to me. If I die, then the parent loans are extinguished.

[Peace77]

No, when a parent co-signs a private student loan, they are still responsible even if the student dies.

[Deleted]

Oh, private loans. I guess since I paid cash for most of my daughter's education I am in the same spot :-) If she dies I am out the money since I was stupid enough to pay cash :-)

[DVM gone riding]

May 12, 2012 12:03:56 GMT -5 @rockit said:

Unless she signed to be financially responsible for treatment she should not pay. However in the end it is her choice and if she chooses to bankrupt herself for her ethical beliefs, then that is her option.

I don't understand the co-signer Student Loan statements. I think it is a myth that the cosigner still has to pay. The contract is clear that the loan is discharged in the event of death. I'd be interested in knowing the real facts on that. If my DD died, her student loans would be extinguished, but I'd still be obligated for the Parent loans because they are loans to me. If I die, then the parent loans are extinguished.

is it really her option though??? If I was her legit creditor I would insist on the repay back of the money paid non-owed to the hospital to be returned so it could be distributed to the LEGALLY owed creditors

[Works4me]

In CA, if there is no money in the estate, Medical or CMSP pays for it. All she would have had to do was the paperwork.

So sad she is needlessly bankrupting herself.

[NoNamePerson]

A little OT but if the mother is paying the bills, I hope she at least pays attention to what she is paying. I kept getting a bill for my mother that I knew wasn't owed. All her nursing home/dr/medical bills had been paid since I was the one handling that.

Final notice said would be turned over to collection. I call Dr. office and asked what the bill was for. They told me and then told me the date the procedure was done. DUH, procedure was done 8 days after her death. And the bill was from the Dr. who signed her death certificate.

The mother in the OP is grieving and under a lot of stress so I hope someone is helping her with this if she insist on paying.

[michelyn8]

When my father passed away, my mother paid the medical bills he had accumulated in the last month or two of his life except one. She received a bill from the hospital he was taken to that last morning and hit the roof. My father was dead when they loaded him in the ambulance and stone cold when we were finally "advised" of his passing and were allowed to see him 3 hours later. My mother wrote a letter to the hospital stating that and her distress at being kept waiting for so long before she was actually told he had passed and that she refused to pay them one penny. She never heard from them again. Mama never signed to be responsible for Daddy's bills but she paid them out of money she received from his life insurance and pension because she felt it was her responsibility. If she hadn't had the money from his estate, I'm sure she would have told them "to bad".

Now if it were me AND I was financially able, I'd pay as much as I could on the bills. I'm paying medical bills for DD2 because she doesn't have a job. I'm not legally obligated since she's over 18 and I never signed anything stating I'd take responsibility for them but I'm trying to keep her from getting hit with collections. If I get to a point its a burden and takes away from my own care or household needs, then she knows she'll have to work out something or ask for charity assistance.

All my kids are adults and know I'll help when I can but not if its going to put me in a place where I wouldn't be able to help them later on if they really, really need it.