Medical Bill to Collections (Michigan)

Hello,

My son is on Medicaid and received services in January of 2024. The hospital said they were having issues billing Medicaid. Hospital said they rebilled, but I am still receiving bills for the full amount.

1/3/2025: I completed and sent in a beneficiary complaint form.

3/20/25: "still investigating"

7/5/25: I receive another bill from the hospital stating if they don't receive payment, it will go to collections. (I have communicated the Medicaid issue to the hospital several times, it doesnt seem to make a difference)

7/18/25: "still investigating, but escalating. Check back in a few days"

I called today and the status is "still investigating". She then asks for the dates and when it will go to collections. She says to call back on 8/4 as Medicaid cannot escalate or do more until the bill is in collections. I asked if I paid the invoice to avoid collections, would Medicaid reimburse me once the issue was resolved. The answer was no.

What in the world?

My questions

  1. Is this information correct? Medicaid cannot do anything until the bill is sent to collections?
  2. If/when it is sent to collections, this will impact my credit score, correct?
  3. Does anyone have any advice on how to navigate this?

Thanks!

Edit/update: we received the Medicaid approval in the mail the exact same day as the collections letter. Government programs are the worst.

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