My insurance company paid the doctor for a bill that is already with a collector but the i'm still in default

Question

the collector is now threatening to sue me even though i have explanation of benefits paid 5 months ago to the doctor by my insurance.

Answer 1

If the EOB states that you owe nothing, contact the doctor's office and make sure they did indeed receive the payment and make the necessary contractual adjustments to result in full payment. Then make sure they contact the agency and cancel the collection proceedings. Document your conversation with the doctor's office in a letter to the collection agency and include a copy of the EOB. Request that the agency send you a written statement that the account has been settled.That should take care of the problem.

It's possible that the payment was received after it was assigned and the provider did not send that info to the agency.

This is exactly why EOB's should be filed along with bills to make sure that all is handled timely.

Answer 2

The insurance paid their part, not yours.  Even though you received an explanation of benefits, you may still be responsible for part of the bill.

On your statement it should state how much you MAY be liable for.  In this case, you probably owe them money.