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Man owes debt collection agency after court denies lab test appeal

Jan 11, 2012 Mike Garretson

A Custer, California, man owes more than $400 to a collections agency after a small claims court judge determined his laboratory testing wasn't covered under his insurance's copay, the Rapid City Journal reports. Rich Barry, who received lab treatment at Custer Regional Medical Clinic in 2009, argued that the charges - $357.96 - should've been billed to his insurance under a clinic code instead of a hospital code. If filed under the former code, it would have cost Barry a mere $50 copay. However, CRH retorted that because the lab tests were conducted on its hospital site, the coding was, in fact, correct. Magistrate Shawn Pahlke agreed. "The court determined that Mr. Barry's claim is appropriately leveled at his insurance carrier, not the facility that provided the services," John Dill, counsel for Credit Collections Bureau in Rapid City, told the news source in a separate article. "If Mr. Barry expected his insurance to pay more than it did, that is something he needs to take up with his insurance company." In all, Barry owes $455.07, with court fees and interest included.