Medical Debt Collection Policy

1.Purpose

Healing Moments Counseling is committed to providing compassionate and ethical care to all clients. This policy outlines fair and transparent procedures for handling unpaid balances while complying with all applicable Minnesota and federal laws, including:

  • Minnesota Debt Fairness Act (Minn. Stat. Ch. 332C)

  • Minnesota Statutes §§ 62J.806 (posting of debt collection policy)

  • Fair Debt Collection Practices Act (FDCPA, 15 U.S.C. § 1692 et seq.)

Our goal is to maintain respectful communication, protect client rights, and ensure that no client is denied counseling services due to financial hardship.

2. Scope

This policy applies to all clients, guarantors, or responsible parties with outstanding balances for professional counseling services provided by Healing Moments Counseling (“HMC”), whether services are delivered in-person or via telehealth.

3. Billing Procedures

  • Invoices are issued after services are rendered and insurance claims (if applicable) are processed.

  • Clients receive a detailed statement within approximately 30 days of their appointment, showing:

    • Date and type of session

    • Insurance payments or adjustments (if applicable)

    • Client responsibility (copay, coinsurance, deductible, or self-pay balance)

    • Payment instructions and contact information for billing questions

  • Clients are encouraged to reach out promptly if they have questions about charges or need to arrange payment.

4. Payment Options and Financial Hardship

  • HMC accepts cash, check, credit/debit card, and HSA/FSA card payments.

  • Payment is due at the time of service unless other arrangements are made.

  • Clients experiencing financial hardship may request a payment plan or sliding-scale adjustment based on documented need.

  • Clients are provided with information about available options prior to any collection activity.

5. Collections Process

All communication is handled professionally and respectfully. Healing Moments Counseling does not sell, assign, or report client accounts to credit bureaus.

Step 1 – Initial Statement

  • Sent within 30 days of service or insurance processing.

Step 2 – Reminder Notices

  • A reminder notice is sent at 30 days past due.

  • A second reminder or phone call may be made at 60 days past due.

Step 3 – Final Notice

  • A Final Notice is sent at 90 days past due, advising that the account may be referred to a licensed collection agency if no payment or arrangement is made.

Step 4 – Referral to Collection Agency

  • If payment or an active payment plan is not in place 120 days after the first statement, the account may be referred to a Minnesota-licensed collection agency.

  • Clients receive written notice prior to referral.

  • Collection agencies must comply with the Minnesota Debt Fairness Act and FDCPA standards, including prohibitions on harassment, threats, and misrepresentation.

6. Client Rights and Protections

Healing Moments Counseling fully supports the rights afforded to clients under Minnesota law:

  • No credit reporting: Medical debt cannot be reported to any credit bureau (Minn. Stat. § 332C.03).

  • Right to information: Clients may request an itemized statement or dispute charges in writing.

  • Right to assistance: Clients may request a payment plan or financial hardship review at any time.

  • No harassment or threats: HMC and any third-party collectors must comply with state and federal debt collection laws.

  • Continued care: Clients will not be denied medically necessary counseling due to unpaid past balances if they are actively seeking resolution.

7. Communication Standards

  • All collection contacts will be made only between 8:00 a.m. and 9:00 p.m. local time unless otherwise agreed.

  • Communication will remain confidential and never disclosed to third parties except as legally permitted.

  • Staff must communicate calmly and respectfully, focusing on resolution and client dignity.

8. Dispute Resolution

Clients may submit a written dispute or billing inquiry to:
Billing Department – Healing Moments Counseling
1262 Cedar Street
Monticello, MN 55362
Email: info@healingmomentscounseling.com

HMC will:

  • Acknowledge the dispute within 10 business days

  • Suspend any collection activity on the disputed balance while under review

  • Respond in writing within 30 days with findings and next steps

If an error is found, HMC will promptly correct the balance or issue a refund if applicable.

9. Recordkeeping and Confidentiality

  • All billing communications and payment records are maintained in compliance with HIPAA and Minnesota Data Practices Act standards.

  • Financial and client information is never shared with unauthorized parties.

  • Collection records are retained for at least seven years after resolution.

10. Staff Training and Oversight

  • All HMC staff involved in billing or collections will be trained annually on:

    • Minnesota Debt Fairness Act and FDCPA requirements

    • Confidentiality and client rights

    • Compassionate, trauma-informed communication practices

  • Any deviation from this policy will be reviewed and addressed by the Clinical Director or designated compliance officer.

11. Review and Availability

This policy will be reviewed annually and updated to remain compliant with Minnesota law.
A current version is:

  • Posted on Healing Moments Counseling’s website

  • Available upon request at the clinic or by email