[CA] When does the statute of limitations start on an unpaid medical bill?

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Seth
Seth

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In California, whether a medical provider's small claims suit is time-barred depends on the claim theory and the dates that actually matter, not just the bill date. A written contract claim is generally subject to a four-year limitations period, an oral contract claim to two years, and open book account or account stated theories can change when accrual begins under Cal. Civ. Proc. Code § 337, Cal. Civ. Proc. Code § 339, and Cal. Civ. Proc. Code § 337a. If the service was performed nine years ago and there was no later written acknowledgment (see Cal. Civ. Proc. Code § 360), payment, or new agreement reviving the debt, you likely have a strong statute of limitations defense. Once that period has run, § 337(d) also bars a creditor from bringing suit to collect the debt. The plaintiff may argue the bill date controls if the paperwork required payment on billing or if the suit is pled as an account stated, although § 337(b) provides that for an account stated, the time begins to run from the date of the item, or the last item, in the account. So the critical question is what the complaint alleges and what the provider's documents say about when payment was due.

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I have a question about healthcare fraud committed by a medical provider, such as billing for services never performed, unnecessary or misrepresented.

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Lexi
Lexi, Chatbot

I understand that dealing with healthcare fraud can be very concerning. Can you please share if you have already reported this issue to any authorities or organizations?

I already reported the issue to the FBI.

user
Lexi
Lexi, Chatbot

Have you gathered any evidence or documentation related to the fraudulent activities you suspect?

Yes.

user
Lexi
Lexi, Chatbot

Is there anything else the Lawyer should know before I connect you? Rest assured they'll be able to help with your healthcare fraud issue.

No.

user
Seth
Seth

Hi there! My name is Seth, and I am a licensed attorney. Please know that my responses are for general information only and do not constitute legal advice. I understand you have a question about healthcare fraud committed by a medical provider, such as billing for services never performed, unnecessary or misrepresented. Could you tell me more about any specific details or concerns you have regarding this situation? - Seth

A medical provider is suing me for a time-barred fraudulent bill. We are hundreds of victims, and she is suing many of us in small claims court right now. The judge in my county made one of the victims pay a bill that was 9 years old. The plaintiff successfully confused the judge into believing the statute of limitations starts from the date of the bill and not from the date of service. The law apparently states that the statute of limitations starts from the date of service "OR" the bill. This creates so much confusion. This provider has a history of sending extremely late bills. This is her scheme to lure patients into returning to her facility for years, not knowing that she is about to send them a fraudulent bill.

user
Seth
Seth

Based on your situation, there are several legal arguments and considerations in California that could potentially support your case:

Statute of Limitations: In California, the statute of limitations for collecting debts typically starts from the date of service, not the date of billing. This means that if the service was provided more than four years ago, the claim might be time-barred, depending on the type of contract involved.

Consumer Protection Laws: California has strong consumer protection laws that may protect you from unfair billing practices. If the provider has a history of sending extremely late bills, this could be considered deceptive or unfair under these laws.

Legal Precedents: There may be legal precedents in California that clarify when the statute of limitations begins in cases involving medical billing. These precedents could be used to argue that the provider's interpretation is incorrect.

Let me know if you have any questions or clarifications, if not I'll move forward with guidance.

Show me the law that clearly states that the debt starts from the date of service, and not from the date of the bill.

user
Seth
Seth

In California, whether a medical provider's small claims suit is time-barred depends on the claim theory and the dates that actually matter, not just the bill date. A written contract claim is generally subject to a four-year limitations period, an oral contract claim to two years, and open book account or account stated theories can change when accrual begins under Cal. Civ. Proc. Code § 337, Cal. Civ. Proc. Code § 339, and Cal. Civ. Proc. Code § 337a. If the service was performed nine years ago and there was no later written acknowledgment (see Cal. Civ. Proc. Code § 360), payment, or new agreement reviving the debt, you likely have a strong statute of limitations defense. Once that period has run, § 337(d) also bars a creditor from bringing suit to collect the debt. The plaintiff may argue the bill date controls if the paperwork required payment on billing or if the suit is pled as an account stated, although § 337(b) provides that for an account stated, the time begins to run from the date of the item, or the last item, in the account. So the critical question is what the complaint alleges and what the provider's documents say about when payment was due.

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