$49 Billion in Medical Debt
15 million Americans have medical debt in collections on their credit reports
Despite some changes by the Big 3 credit bureaus, some 15 million Americans currently have medical debt on their credit reports.
A new report from the Consumer Financial Protection Bureau (CFPB) sheds light on the ongoing medical debt crisis.
The report shows that medical debt reported by credit reporting agencies totals $49 billion.
This despite new policies that no longer report medical debt in collections if the total amount owed is $500 or less.
First, medical debt should not be a thing.
Debt collectors shouldn’t profit because someone got sick.
The existence of medical debt speaks to a system that is broken.
The presence of medical debt on credit reports can have far-reaching implications - lowering credit scores, which can impact access to credit, housing, and even employment.
Second, this can be stopped.
At least two government entities are taking steps to alleviate medical debt.
Arizona and Toledo both bought medical debt for pennies on the dollar - freeing people from the burden of medical debt.
We can reset the medical debt clock.
States and the federal government could come together to buy back medical debt.
This would be a first step toward a more rational healthcare system.
In other news with medical and financial implications, a new report points out that while Health Savings Accounts (HSAs) have many benefits, they also come with problems for consumers.
Specifically, these benefits are being offset by charges like monthly maintenance fees, paper statement fees, outbound transfer fees, and account closure fees.
It's often difficult to switch accounts if someone changes employers or health plans, too.