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Who Pays the Bill?

Address the scenario listed below. Support your response with appropriate cases, laws, and other relevant examples research and cite research, using APA guidelines.

Who Pays the Bill?
Juanita was rushed to the hospital complaining of a severe headache. While the emergency room doctors examined Juanita, her mother, Estella Loren completed the documentation the hospital administration required. The documents included the standard health questionnaire, the HIPAA notice, and release of insurance benefits directly to the hospital. The insurance document contained the following statement. "If insurance coverage is insufficient, denied altogether, or otherwise unavailable, the undersigned agrees to pay all charges not paid by the insurer." The doctors performed surgery on Juanita to stabilize an aneurysm in her brain; however, she died several hours after the surgery was completed. The insurance company refused to pay $11,235.56 of the charges, and the hospital sued Loren for the unpaid balance based on her signature on the insurance form. Loren argues that she is not liable because she signed the document as an agent for her daughter. Is Loren liable? Explain why or why not.

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In this case clearly Loren will need to pay for the bills of her daughter. The insurance form clearly explains that "If insurance coverage is insufficient, denied altogether, or otherwise unavailable, the undersigned agrees to pay all charges not paid by the insurer".

The hospital will argue that the individual has signed the document is liable to pay any unpaid balance based on the signature. If Loren is claiming to be an 'agent' for her daughter, then, it is ...

Solution Summary

This solution discusses why Loren is liable for the bills despite her claim that she was acting as an agent on behalf of her daughter in 321 words with three references.

$2.19