WASHINGTON – Consumer groups are praising a White House announcement that it will be taking measures to increase consumer protections and lessen the burden of medical debt.
The White House did not release specifics around what steps it plans to take.
“We appreciate the White House’s efforts to improve protections for consumers facing medical debt, especially directing the Department of Health and Human Services to examine whether healthcare providers are providing adequate financial assistance for economically struggling uninsured or underinsured consumers,” said Jenifer Bosco, staff attorney at the National Consumer Law Center. “We have seen too many patients face lawsuits and debt collection from nonprofit hospitals when they should have received hospital financial assistance instead.”
As CUToday.info reported, the White House announcement comes less than a month after the Big Three credit bureaus announced changes that would eliminate up to 70% of medical debt from credit reports.
‘Vulnerable’ Consumers
“We’re glad to see that the White House and Consumer Financial Protection Bureau will focus on the remaining 30%. Credit reports are used not just for credit, but housing, employment, insurance and more,” said Chi Chi Wu, staff attorney at the National Consumer Law Center. “No one should have trouble renting an apartment, purchasing a home, or getting a job over medical debt.”
Added Berneta Haynes, staff attorney with the NCLC, “The 30% of medical debt that will remain on credit reports may be held by the consumers who are most vulnerable – patients who have suffered a catastrophic accident or illness that led to huge medical bills, or those who lack insurance or have meager coverage. Black and Latinè consumers are more likely to be uninsured and underinsured, and to carry significant medical debt, and Black people in particular are more likely to be contacted by debt collectors over medical debt.”