CFPB finalizes rule barring medical debt from credit reports
Source: The Hill
CFPB finalizes rule barring medical debt from credit reports
BY JOSEPH CHOI 01/07/25 05:00 AM ET
The Consumer Financial Protection Bureau (CFPB) on Tuesday finalized its rule barring medical debt from being included on credit reports, potentially freeing up billions in credit.
The finalized rule will prevent medical bills from being included on credit reports used by lenders and will prohibit lenders from using medical information in their decision-making. ... The CFPB estimated this rule will remove $49 billion in medical bills from the credit reports for roughly 15 million Americans.
The Biden administration advanced this rule with the aim of helping people with medical debt obtain better credit scores and have an easier time applying for new loans. The CFPB cited its own research that found medical debt to be a poor predictor of whether someone will repay a loan.
Vice President Harris is set to announce the final rule on Tuesday, as well as announce that states and localities have leveraged funds from President Biden's American Rescue Plan to support the elimination of over $1 billion in medical debt for more than 700,000 Americans.
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Read more: https://thehill.com/policy/healthcare/5070182-medical-debt-removed-credit-reports-cfpb/amp/
Hat tip, the Washington Post this morning, but Ive been unsubscribed.
https://www.washingtonpost.com/business/2025/01/07/cfpb-medical-debt-credit-reports/
BumRushDaShow
(145,067 posts)SheltieLover
(60,704 posts)This will help a lot of people!
ck4829
(36,204 posts)Yet another TikTok video calling out the notoriously expensive U.S. healthcare system is going viral on social media. Shared by Adam Conover, a comedian and former host of the informative program "Adam Ruins Everything," in response to another TikTok about how medical bills mysteriously shrink when the patient asks for an itemized receipt, the one-minute clip explains why this suspicious phenomenon happens. The original video was posted by a TikTok user named Tre'jon Wilson and it shows him drinking something while the text overlay ponders whether the American healthcare system is a scam.
"Tell me why my hospital bill went from $4,000 to $950 all because I asked for a receipt and a list of everything I was being charged for," the overlay text reads. "They lowered my bill by 76%. Is it me or our health care system is a scam?" Conover took it upon himself to answer this question by stitching the original video and explaining why so many hospital bills are massive and why the charges seem to vanish when patients challenge them with the hospitals. "It's because the numbers on every hospital or doctor bill are straight-up fake and made up," Conover says in the video.
"If you have insurance, your hospital has to negotiate with the insurance company for the price of the services," he continues. "So they set these super high ridiculous numbers as a starting point for that negotiation. The insurance company says, 'bulls**t, we're paying you a third of that.' They haggle a bit and decide on a number.'" Conover goes on to explain why this system has the power to ruin lives. "Here's the f**ked up part. If you don't have insurance, the hospital still put that original, ridiculously high, just for negotiation number on your bill," he says in the video.
"So you could easily end up paying three, five, even ten times what the procedure actually costs," he notes. "The next time you get a medical bill, make sure you negotiate. There are even non-profits called medical billing advocates that will help you negotiate." Conover ends the video by directing people to an episode of "Adam Ruins Everything" titled "The Real Reason Hospitals Are So Expensive," in which he goes into detail about the questionable practices behind medical billing. His TikTok video touched a raw nerve for those already dissatisfied with the American healthcare system and many confirmed that negotiating the ridiculous amounts mentioned in hospital bills has brought them down to a much lower number.
https://scoop.upworthy.com/tiktok-user-explain-why-hospital-bills-shrink-when-asked-itemized-receipt
Putting medical bills on credit reports is the same as putting "readings" from tea leaves on credit reports.