On Friday, September 22, the Consumer Financial Protection Bureau (CFPB) announced it has begun the rulemaking process to “remove medical bills from Americans’ credit reports.” For more than a year now, the CFPB has taken aim at the Fair Credit Reporting Act (FCRA) slowly chipping away at legal, proper practices of the nation’s healthcare providers and their partner collection agencies with false and misleading claims.
Last year, in response to continued CFPB releases, the credit bureaus independently issued sweeping changes that lengthened initial reporting from 180 to 365 days; prohibited reporting of debts under $500; and required removal of paid-in-full accounts. Even with those changes that severely limited the impact of credit reporting on delinquent medical debt collections, the CFPB has been relentless with its claims that medical billing is “plagued with inaccuracies and mistakes” that are “compounded by problems such as disputes over insurance payments or complex billing practices.”
These claims are patently erroneous and are causing constant damage to the healthcare system that the CFPB refuses to acknowledge. As the overall delinquent medical debt raises, the healthcare industry will continue to face challenges to fund necessary medical services and eventually begin forcing key healthcare providers out of business altogether when they can no longer cover overhead without payment of services.
Could you survive with a 10% reduction in your revenue? If the CFPB’s proposed ruling becomes law (or the standard?), there will be no consequence if patients stop paying their portion. Join with Meduit today to fight against this proposal that will negatively impact hospitals and physicians all over the country.
Meduit’s pledge to our healthcare partners, both big and small, is to advocate against the elimination of medical debt reporting proposed in this announced rule, and we ask you to consider taking that stand with us. The Association of Credit and Collection Professionals (ACA) has already spoken out against the rulemaking, and we will be joining in the fight ahead of our industry. There are many groups beginning to rally, as this news is still so new, but we cannot wait.
Separately, we may cause small ripples, but together as a united voice we can create a wave. Get ready to stand alongside Meduit with other agencies and healthcare professionals against this rulemaking! Watch for more information from us about joint advocacy action opportunities. Once timeframes and response mechanisms are released, we will provide further details.
If you would like to review the outline of proposals and alternatives under consideration for the CFPB’s medical debt rulemaking discussed in this alert, visit the CFPB’s newsroom.
For questions regarding this alert, please reach out to Jill Cloys, Director of Compliance: jill.cloys@meduitrcm.com.