Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
A statement of account typically lists all charges, payments, and credits in chronological order. Under Minnesota law, creditors and service providers must apply payments promptly and show them clearly on the statement. Insurance reimbursements and government program payments appear in the Payments and Credits section of the statement.
- Description: Each payment line item shows the payer’s name (for example, ‘ABC Insurance’ or ‘Medicaid’).
- Date: The date the payment was applied to the account.
- Amount: The payment amount, usually shown as a negative number or with a minus sign.
- Reference: A claim or policy number, invoice number, or government program identifier.
For example, a hospital bill might list:
05/10/2023 Surgery Fee $5,000.00 05/15/2023 ABC Insurance Payment -$3,500.00 05/20/2023 Medicaid Payment -$1,200.00 05/22/2023 Patient Responsibility $300.00
The Payments and Credits section reduces the total balance due by the sums received from third-party payers.
Under the Minnesota Fair Debt Collection Practices Act (Minn. Stat. § 332C.03), a debt collector must not misrepresent the amount, status, or character of any payment. You have the right to request a detailed ledger showing all payments, credits, and charges for accuracy.
Helpful Hints
- Review each line for the payer’s name and payment date.
- Keep copies of insurance Explanation of Benefits (EOBs) and government program notices.
- If you spot an error, contact your provider and insurer immediately in writing.
- Federal programs like Medicare label payments with ‘CMS’ or ‘HHS.’ Minnesota’s Medicaid program often appears as ‘MN Medical Assistance.’
- You can request a copy of your account statement under the Minnesota Health Records Act (Minn. Stat. § 144.335).