Medical Debt Credit Report

[somarco]

Starting July 1, 2022, medical debt that’s been paid will no longer be included on credit reports from Equifax, Experian and TransUnion—even if it’s been on your report for several years.

If you’re in the process of negotiating or paying a medical debt, this can give you extra time to work with providers or collectors to find a mutually-agreeable payment solution.

Finally, beginning in the first half of 2023, the three consumer credit reporting agencies will no longer include medical debt in collections under $500 on credit reports.

70% Of Medical Collection Debt Will Soon Be Removed From Credit Reports: Here's What You Need To Know

This is GOOD NEWS for @DonP who posted this . . .
I had a $4 k bill . My part was $490 . I’ve be sending in $5 a month for over 5 yrs . I never worked a payment plan out .

https://insurance-forums.com/commun...ing.108911/page-4#:~:text=Bookmark-,#38,-Like

He will no longer have to worry about stiffing his provider and having his credit impacted.

And he can continue sharing pearls like this with his clientele . . .

You think a retiree making $38 k a yr is paying a $2400 hospital bill ? No way . If anything I tell them pay $10 a month .

I had no idea that agents were permitted to hand out legal advice. Guess I need to look at my E&O policy . . .

 

[Truce]

4 years ago I remember speaking to a to manager of a large apt complex who told me that he didn't even use medical ins debt when reviewing the credit of potential renters. Told me that so many people have it, it's such a messed up system, not their fault, etc. They just determined that it wasn't a relevant metric toward assessing creditworthiness. I was surprised how dismissive he was, but since then I've heard the same thing from many other landlords and they are not running charities.

Providers have designed their entire billing dept to collect bills from INSURERS, not patients. The growth of high deductible plans far outpaced the capacity of providers to collect payments outside of the point of sale.

As Don notes, it's a free for all when big bills arrive in the mail long after the service has been received. Maybe I'll pay, maybe I won't. That's the attitude. And I if I can still buy a car or rent a house or get a cell phone plan....then the big bad hospital can go pound sand. If having this attitude is not a useful predictor for other credit needs, then the big bad credit agencies' job is to reflect this in the scores.

 

[whatyouwantfinally]

As Don notes, it's a free for all when big bills arrive in the mail long after the service has been received. Maybe I'll pay, maybe I won't. That's the attitude. And I if I can still buy a car or rent a house or get a cell phone plan....then the big bad hospital can go pound sand. If having this attitude is not a useful predictor for other credit needs, then the big bad credit agencies' job is to reflect this in the scores.

It's not the job of credit agencies to predict ability to pay. That's the job of whoever is extending credit.

 

[StephanieCJ]

We are fortunate that all of the hospitals in my area will work out a payment plan and they also all have financial assistance programs. There is really no reason for anyone in my area to have that issue unless they just decide not to pay something owed, in which case, I think they suck at life.

 

[somarco]

There is really no reason for anyone in my area to have that issue unless they just decide not to pay something owed, in which case, I think they suck at life.

You might be surprised at the number of folks who believe they are not obligated to pay their medical bills.

Several years ago, when I worked the U65 health insurance market, I spoke to a woman who lived in a very tony intown neighborhood, and she refused to buy health insurance. She told me if she got sick she would go to the local charity hospital.

That "charity" hospital was just barely keeping their doors open, and anyone who did not pay their bill would be turned over to their internal collections department. If they had assets they were expected to pay, otherwise they would be sued.

I checked her address and noted the home had a value in xs of $2M and over $1M equity.

She was pissing up a rope . . .

 

[DonP]

Starting July 1, 2022, medical debt that’s been paid will no longer be included on credit reports from Equifax, Experian and TransUnion—even if it’s been on your report for several years.

If you’re in the process of negotiating or paying a medical debt, this can give you extra time to work with providers or collectors to find a mutually-agreeable payment solution.

Finally, beginning in the first half of 2023, the three consumer credit reporting agencies will no longer include medical debt in collections under $500 on credit reports.

70% Of Medical Collection Debt Will Soon Be Removed From Credit Reports: Here's What You Need To Know

This is GOOD NEWS for @DonP who posted this . . .
I had a $4 k bill . My part was $490 . I’ve be sending in $5 a month for over 5 yrs . I never worked a payment plan out .

https://insurance-forums.com/community/threads/medicare-advantage-plans-accused-of-denying-care-and-overcharging.108911/page-4#:~:text=Bookmark-,#38,-Like

He will no longer have to worry about stiffing his provider and having his credit impacted.

And he can continue sharing pearls like this with his clientele . . .

You think a retiree making $38 k a yr is paying a $2400 hospital bill ? No way . If anything I tell them pay $10 a month .

I had no idea that agents were permitted to hand out legal advice. Guess I need to look at my E&O policy . . .

Charitable write off smart ass . An individual making less than $26 k and married under $34 k . Depends on the area . Those bills will be forgiven by the hospital . I’m not giving advice . Im telling them many Hospitals have assistance and writeoff programs . Check with yours . 98% of these people never pay a time . Why do you think nursing homes and snf’s pull many people off mapd ? There never getting that 20% Medicare doesn’t pay and they sure as hell never bill the patient . It’s a write off . I used why to hospitals bill xyz ins company $40 k when the contract says they pay $20 k ? They write that $20 k bogus extra off . So that covers them wether Pete pays his $5 k deductible to the hospital are not

 

[kstein]

Ya they def don't write off the excess...

 

[kstein]

Should clarify, hospitals really aren't writing off the dif between the charged amt and insurance contracted amt.
For uninsured and other non pmts there is a good will/write off amt they have. Not sure which donp was referring to.

 

[T Sparks]

I don't get involved with clients or potential clients about paying outstanding medical debts. I feel that I am there to offer coverage options, and they either buy or they don't. I DO service clients if they need help with a claim issue but as far as going into a discussions as to paying outstanding medical debts or if they do not pay copays or other out of pocket expenses that is not what I am around for or to discuss how it may or may not affect their credit reports. Believe it or not this has never even been an issue that a client has brought up to me.

 

[DonP]

I don't get involved with clients or potential clients about paying outstanding medical debts. I feel that I am there to offer coverage options, and they either buy or they don't. I DO service clients if they need help with a claim issue but as far as going into a discussions as to paying outstanding medical debts or if they do not pay copays or other out of pocket expenses that is not what I am around for or to discuss how it may or may not affect their credit reports. Believe it or not this has never even been an issue that a client has brought up to me.

And I only mention this to people living in poverty and they have no money . Wether I say it our not somebody living on $1500 a month isn’t going to be paying a $2k hospital bill . Any who do pay are paying $10-$30 a month .