It is understandable to feel completely overwhelmed by the loss of a loved one. The immediate grief of knowing that person will no longer be in your life is immeasurable.
Unfortunately, there are practical aspects of a person’s passing that have to be dealt with that often impede your ability to process the trauma. There are final arrangements to plan, along with carrying out the wishes of your loved one with regard to their estate. The last thing they would have wanted is to saddle you and your family with seemingly insurmountable medical bills.
These issues are compounded if the death was caused by someone else’s negligent actions. Fortunately, in cases where it can be established that a wrongful death has occurred, there could be a recourse that will hold the liable party accountable and help you recover compensation to pay for any outstanding medical debt.
Understanding Who Is Responsible for Medical Debt After Death
It may come as a huge relief to know that in West Virginia, family members are generally not personally responsible for a deceased loved one’s medical debt. The only exception would be if you co-signed a loan or became a guarantor for your loved one’s medical bills. In those instances, creditors may attempt to contact you directly for reimbursement.
What happens to the medical bills if there is no guarantor? It is expected that the deceased person’s estate pays the medical expenses of the last illness through the probate process.
That might seem like a contradiction. After all, the assets of the estate are what were left behind by your loved one with the intention for those funds to be distributed among the designated beneficiaries.
It is important to remember that you should not pay for any medical bills out of your own pocket, especially if you are moving forward with a wrongful death claim. Filing that claim could put a hold on any collection action until the matter is resolved.
How the Probate Process Addresses Outstanding Medical Expenses
The estate of a person who passes away may go through probate. Probate is the legal process that transfers a person’s property and assets after they die. It does not matter how large the estate is; there will still be a probate process.
At the start of the probate process, an executor is appointed by the state unless there is an executor designated in a will. Even without a will, the state will typically appoint the surviving spouse or eldest child. The executor then becomes legally responsible for managing the deceased person’s affairs.
Once the executor is in place, all the estate’s assets are calculated, along with the debts. Notifications are sent to any creditors, banks, and government agencies such as Social Security or Medicare of the death. There is a specific order in which the debts of the decedent are to be paid according to West Virginia law, and those debts will come from the estate.
There may be extreme situations in which estate property must be sold to pay off debts. What remains after the debts are paid will be distributed among the designated persons in the will. If there are no designated persons, the executor can determine how to disperse the funds.
The Role of Health Insurance and Medicare in Final Billing
When there are outstanding medical bills, health insurance and Medicare (if applicable) can step in to pay them, but this is not without its complexities. If the decedent was on Medicare, then the coverage ends on the date of their death. Doctors are allowed to submit claims up to one year after the passing. That means you can still receive bills for deductibles and co-insurance after your loved one has passed.
If the circumstances around the death involve liability insurance, as you would claim in a car accident, Medicare might make a conditional payment to immediately cover medical expenses. Once the claim is settled, Medicare would have to be reimbursed out of the settlement.
When there is a private health insurance policy in place along with Medicare, the two entities will engage in a “coordination of benefits” to determine who might pay the bills first. Typically, the private health insurance will be considered the primary payer who will pay up to the limits of the policy, with Medicare making up any difference.
Steps to Take When Debt Collectors Call Regarding a Deceased Relative
Upon the passing of your loved one, it might seem as though there is a race among creditors to collect any debts. Sadly, those creditors often don’t have much sympathy for what the family is going through. They just want their money. There are steps you should consider to protect your family’s finances. Here’s what you need to do when the debt collectors call:
- Step 1: Inform Them of the Death: The creditor might be calling simply as a matter of policy if they haven’t gotten a recent payment. You can inform them of the death and direct them to the executor of the estate. That will be the person they need to deal with. If you happen to be the executor, you can direct the creditor to speak with the attorney representing the estate.
- Step 2: Do Not Pay: Despite what the creditor might be asking for, you don’t want to make any payments on the debt until the estate probate process is completed. Even then, you should consult with an attorney because you might not be responsible for the debt. However, if you make a payment, you are essentially admitting that you do intend to pay it all off.
- Step 3: Request Verification in Writing: You need to ask any creditor for written proof of the debt and what they consider to be your liability. Without that written proof, their claim could be invalid.
- Step 4: Send a Stop Communication Letter: You and your attorney can send a letter via certified mail to ask them to stop calling and harassing you while the matter is being resolved.
- Step 5: Dispute the Debt: If you are not responsible for the debt, you can send a written dispute within 30 days of the creditor sending you their “proof of liability.”
Recovering Medical Costs Through a Wrongful Death Action
If the circumstances surrounding the passing of your loved one involve a wrongful death claim, you may be able to recover medical costs through the process of filing and settling that claim.
This is a situation where an experienced Charleston wrongful death attorney will prove to be invaluable. At DiPiero Simmons McGinley & Bastress, PLLC, we have helped many clients whose loved one’s passing was caused by someone else’s negligent actions.
You should not have to endure the added financial burdens. Our goal is to help clients get the compensation they are due, not only to cover any outstanding medical bills but also to ensure their financial future is secure.
If you suspect that your loved one’s passing was due to someone else’s actions, we want to hear from you. It doesn’t matter if it was another driver or a medical practitioner; you shouldn’t have to take on the financial burdens. Call to schedule a free case review today.
