A program called Setoff Debt in South Carolina allows the state department of revenue to withhold money from people's tax refunds and use it to settle their outstanding bills with more than 100 government entities. Hospital coding errors, however, have caused some patients to pay their medical bills twice, reports News2.
In 2014, Tammie Foster was admitted to the emergency room at Pelham Medical Center in Greer, S.C., with severe chest pains. Pelham is owned by Spartanburg (S.C.) Regional Hospital.
Ms. Foster, a medical biller by profession, had both health insurance and a health savings account, and hospital records show Ms. Foster's bills were paid in full in October 2014.
Nearly 18 months later, however, Ms. Foster received a check in the mail from the South Carolina department of revenue showing almost $500 had been withheld from her refund and sent to Spartanburg Regional, including a $25 service fee.
The hospital confirmed a coding error resulted in Ms. Foster's settled account getting submitted to the government as bad debt.
The hospital has refunded Ms. Foster in full.