What are the ethics of this?

[FullSunDaisy]

If they negotiated the bill down good for them. In that case, the matter is settled and there's no reason for concern.

Like I indicated, all states have different creditor laws. I'm familiar with Michigan's because I practice here. Other states aren't as pro-creditor, others are more so though.

No not good for them!!! From reading what OP said it was not as much as a negotiation and more of a take this or nothing at all because there is nothing you can do. I think this is highly unethical and falls under the whole just because you can legally doesn’t mean you should (ahem like Abortion).

 

[Redwingfan9]

No not good for them!!! From reading what OP said it was not as much as a negotiation and more of a take this or nothing at all because there is nothing you can do. I think this is highly unethical and falls under the whole just because you can legally doesn’t mean you should (ahem like Abortion).

If the bill is $6k and the er settled for $500 that's a great deal. Frankly the original bill isn't that far out of line for serious emergency services. Obviously it depends on what all was done but a few x-rays and a ct or mri along with some tests is going to cost some coin.

 

[FullSunDaisy]

If the bill is $6k and the er settled for $500 that's a great deal. Frankly the original bill isn't that far out of line for serious emergency services. Obviously it depends on what all was done but a few x-rays and a ct or mri along with some tests is going to cost some coin.

That is a great deal but it was highly unethical how he got that deal. By what the OP described, her husband practically told the ER that 1) he is able to pay, 2) he acknowledges he owes this money but 3) he just won’t pay because there is no mechanism within the framework of the law to compel him to pay. So the ER basically settled for just little more than they would have gotten from a collection agency. This guy basically engaged in government sanctioned theft much like certain people engage in government sanctioned murder when they get abortions.

 

[Redwingfan9]

That is a great deal but it was highly unethical how he got that deal. By what the OP described, her husband practically told the ER that 1) he is able to pay, 2) he acknowledges he owes this money but 3) he just won’t pay because there is no mechanism within the framework of the law to compel him to pay. So the ER basically settled for just little more than they would have gotten from a collection agency. This guy basically engaged in government sanctioned theft much like certain people engage in government sanctioned murder when they get abortions.

This doesn't look like theft at all to me but rather a byproduct of free enterprise. He made an offer to settle and they accepted. I don't know why anyone would be upset by it. It's also not government sanctioned. Hospitals sue people all the time for not paying hospital bills, including ER visits. Hospitals often take less than the amount they charge because it costs money to try to collect bills. They have to hire lawyers, pay court fees and other expenses associated with lawsuits. If they can get $500 today they'll take that over getting $500 in 2 years after they've hired and paid lawyers to sue.

I'm in the legal field and deal with hospitals as plaintiffs from time to time, albeit in an auto insurance related capacity. I have a passing knowledge of how all this works.