Journal of Urgent Care Medicine

States Look To Limit Medical Debt Wage Garnishment

Lawmakers in Colorado, Florida, Hawaii, Indiana, Maine, Michigan, Ohio, and Washington are looking to add protections for patients with unpaid medical debt by prohibiting wage garnishment for bill collection, according to MedPage Today. Proponents are concerned that some garnishment might occur for incorrect billing or that siphoning away a worker’s wages could leave low-income families without the money they need for heat, food, or housing. However, providers have concerns about accumulating bad debt that could …

Unpaid Medical Bills Will Remain Part of Consumer Credit Reports

A federal judge has overturned a previous Biden administration rule that would have removed about $49 billion in medical debt from consumers’ credit reports. The rule until now had been caught up in court battles. Even so, last year, the 3 major credit bureaus voluntarily said they would exclude medical debts under $500 from their reporting. The Consumer Financial Protection Bureau (CFPB) estimated that if implemented, the rule could have erased medical debt from the …

Removing Medical Debt From Credit Reports Could Create More Bad Debt for Providers

Now in its waning days, the Biden administration has finalized a regulation banning the inclusion of medical debt in American consumers’ credit reports. The rule would erase $49 billion in medical debts from the credit reports of about 15 million Americans, according to Reuters. The Consumer Data Industry Association and Cornerstone Credit Union League immediately filed a lawsuit against the Consumer Financial Protection Bureau (CFPB) to prevent the law from taking effect. While excluding medical …

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