Medical Billing Forum

General Category => General Questions => Topic started by: billspecial on August 03, 2009, 11:17:15 AM

Title: Notice Of Levy
Post by: billspecial on August 03, 2009, 11:17:15 AM
The doctor that I do billing for received a letter from Aetna notifying him of a Levy against him. It was filed in the state of California-Employment Development Department on April 24, 2009. The garnishment has ordered that they (Aetna) comply with the terms of the levy and they notified us that they will comply. What does this mean for us(his payments)? Can someone explain how a levy works and why it's coming from EDD through Aetna? Thank you
Title: Re: Notice Of Levy
Post by: Michele on August 04, 2009, 06:50:38 AM
First of all, is the levy valid?  Does he owe the debt?  If so, then I don't think there is much he can do.  I haven't personally dealt with this but I would think that any monies that Aetna would be paying out to him would be held and paid towards the debt.

Title: Re: Notice Of Levy
Post by: billspecial on August 04, 2009, 01:45:38 PM
Thank you
Title: Re: Notice Of Levy
Post by: Steve Verno CMBS, CEMCS on August 07, 2009, 04:55:57 PM
I experienced this a couple of times.  The provider contacted his lawyer.  The lawyer went to court and had the levy thrown out. The insurance company never allowed the doctor to go to the court hearing to plead his case but because the doctor never got a notice to appear, the judge found in favor of the insurance company.   State Law may demand a judgement be issued before a levy can take place.

Right now, Aetna is involved with another class action suit regarding their refund demands. As stated, it may be possible the doctor doesnt owe the money.  It could be a simple mistake. You may also have a state law regarding claims for refunds.  For example, one state has a law that says an insurance company has 30 months to submit a claim for an alleged ovepayment but if it involves eligibility, then its 13 months.  The insurance company cannot peform takebacks without written permission of the provider.  This could be supeseded by a provider contract,.