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The benefit to the hospital is the large number of people in your plan being directed to certain "in-network" providers. If you examine your plan documents, you'll see a differential between what the plan will pay to "in-network" and "out of network" providers. The industry term is "steerage" — the insurer "steers" its subscribers to a limited set of providers. The theory being that what the hospitals and docs perfect give up on the perfect front side through discounts, they'll make perfect back in volume. You may be able to explain this to the collection agency — but make sure you have all your documentation in order. Hospitals in my little part of heaven are NOTORIOUS for failing to give explanations to their own collection agencies — usually just your name and the $ they would like you to pay.
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