Insurance Company Pays Them Instead of Hospital.Is This Legal?

[Derek59]

I know a person who's insurance company pays them instead of the hospital, she then pockets all the money and files bankruptcy. she has done this a few times and was recently in the hospital for 2 months so she will be making bank! Is this legal?

 

[2112Greg]

Re: Insurance Company Pays Them Instead of Hospital.Is This Legal

haha...no, it's not legal. Sounds like she has an indemnity plan that reimburses her for her expenses (that she never paid). If she tries to file for bankruptcy, she'll be charged with fraud or the debts that she's claiming will not be discharged. There are also rules (that I can't recall at the moment) about discharging medical expenses...those may come into play, as well, but I can't remember what they are.

Either way, sounds like a messed up deal. But she's committing acts that are not legal.