California CPAP law question

[Omni10871]

In January 2010 I got a respironics auto pap machine using Dakotacare insurance. The agreement was a 10 month purchase where I paid $680 the first month then $450 the next followed by $26 a month for the following 8 months. I lost my insurance in August 2010 and paid off the remaining balance of $450 without insurance. I now have Cigna insurance and they are trying to charge me a $75 a month rental on the CPAP that I bought through Dakotacare. I spoke with one of their customer care reps who told me in California CPAPs are required to be rentals and that they have the law on their side to charge rent on a machine I purchased from a different insurance carrier. Is this correct? Can they charge me rent on a unit I already own? I have been refusing to pay and now my account has gone to collections and is affecting my credit.

[chunkyfrog]

Never heard of such a thing!
My guess--somebody's a big, fat liar!
You do have your receipt--I hope!

[Omni10871]

I have the last bill with proof of payment. They never mailed out a receipt.

[Pugsy]

So they say they can charge you a rental fee for a machine that you already had? I know California has some weird laws but this doesn't sound kosher at all. It was bought and paid for before they even insured you. How did they even become involved with the machine in the first place?

I believe I would ask to see the pertinent state statute in writing.. I would send certified letter requesting such state statute and create a paper trail to use to dispute the collection account.

[brazospearl]

Omni, honey, their statement is just absurd. While I no longer live in California, and god knows the laws about insurance are vast and arcane, it just can't be true that any item you have legally purchased now requires you pay rent to them. It might be time to have them speak to your attorney, or for you to get in touch with the agency governing insurance in California, or something else along those lines. Once this matter is cleared up to your satisfaction, they need to remove the negative statements on your credit report; sadly, you'll probably have to fight them about this as well. Let us know how this works out.

[Omni10871]

My new insurance got involved when I tried to get supplies from pacific pulmonary which is the company I origanally purchased the machine from. Not only am I now getting charged for a rental but I keep getting bills for CPAP supplies I never received. I called Pacific Pulmonary about the issue and their sales department said their system shows I own the machine while their billing department insists that it is a rental.

[Janknitz]

There is NO such law. They are feeding you a bunch of baloney. You must NOT allow this!!!!

You need to use a multi-pronged approach:
Write a "confirming memorandum" to the DME along these lines:
"This letter is to confirm that on [date] I spoke to [name of person] who claimed that even though I paid off my Respironics Autopap machine on [date] for a final total price of [amount], purchased from [DME], California CPAPs are required to be rentals and that they have the law on their side to charge rent on a machine I purchased from a different insurance carrier. If I misunderstood, please send me a correction, in writing in 5 business days.

I believe this statement to be untrue and fraudulent, and If I do not receive information to the contrary in five business days from the date of this letter [and an immediate billing correction], I intend to file complaints with the California Department of Public Health Programs (which is the licensing/certification agency for DME's in California) and the Fraud unit of Cigna insurance."

Send this by certified mail, return receipt requested. Keep a copy for your records.

If you don't get a response in 5 business days, file those complaints! Make sure you include copies of the documentation (including the cancelled check for the payment you don't have a receipt for) with the complaints.

Be sure to keep a running log of all documents and correspondence and to send confirming memoranda like this whenever they tell you anything (including "oops, we were wrong, sorry").

You should also consider filing a complaint with the Better Business Bureau, and send copies of your complaints to the sleep doctor or lab who referred you to this DME.

[chunkyfrog]

Time to contact the state insurance regulators?

[CPAP Mom]

My new insurance got involved when I tried to get supplies from pacific pulmonary which is the company I origanally purchased the machine from. Not only am I now getting charged for a rental but I keep getting bills for CPAP supplies I never received. I called Pacific Pulmonary about the issue and their sales department said their system shows I own the machine while their billing department insists that it is a rental.

X1U
It sounds like Pacific Pulmonary could be the problem possibly. Perhaps they are billing Cigna even though you already paid a bundle to them when you purchased the machine. If they are submitting claims to Cigna, then they may be causing the problem possibly.

[Omni10871]

There is NO such law. They are feeding you a bunch of baloney. You must NOT allow this!!!!

You need to use a multi-pronged approach:
Write a "confirming memorandum" to the DME along these lines:
"This letter is to confirm that on [date] I spoke to [name of person] who claimed that even though I paid off my Respironics Autopap machine on [date] for a final total price of [amount], purchased from [DME], California CPAPs are required to be rentals and that they have the law on their side to charge rent on a machine I purchased from a different insurance carrier. If I misunderstood, please send me a correction, in writing in 5 business days.

I believe this statement to be untrue and fraudulent, and If I do not receive information to the contrary in five business days from the date of this letter [and an immediate billing correction], I intend to file complaints with the California Department of Public Health Programs (which is the licensing/certification agency for DME's in California) and the Fraud unit of Cigna insurance."

Send this by certified mail, return receipt requested. Keep a copy for your records.

If you don't get a response in 5 business days, file those complaints! Make sure you include copies of the documentation (including the cancelled check for the payment you don't have a receipt for) with the complaints.

Be sure to keep a running log of all documents and correspondence and to send confirming memoranda like this whenever they tell you anything (including "oops, we were wrong, sorry").

You should also consider filing a complaint with the Better Business Bureau, and send copies of your complaints to the sleep doctor or lab who referred you to this DME.

I will do exactly as you suggest hopefully it will fix the problem.

[Tip10]

Contact these folks and ask to speak to the fraud division and see what they have to say:

http://www.insurance.ca.gov/

And for others who don't reside in California you can find yours here:

http://www.lawsonfirm.net/stateresource ... 0Insurance:

[Janknitz]

This is fraud on the insurance company ( a DME Billing insurance for a paid for machine) NOT an insurer committing fraud, so I don't think the dept. Of insurance can help. You have to complain to the dept that regulates DME's.

[Breathe Jimbo]

Also, complain to your new insurance company.

[Omni10871]

This is fraud on the insurance company ( a DME Billing insurance for a paid for machine) NOT an insurer committing fraud, so I don't think the dept. Of insurance can help. You have to complain to the dept that regulates DME's.

I will try this first if it doesn't work then I will go with the suggestion from Janknitz.