Doug AldeenDoug Aldeen – ERISA Healthcare Attorney and General Counsel – Visit my website
Opposition is quickly forming against the Biden administration’s rule to ban medical debt from appearing on consumers’ credit reports, threatening the viability of what could be a popular regulation.
Two industry groups filed lawsuits last week seeking to block the rule, which was finalized by the Consumer Financial Protection Bureau a week ago. Also, a leading House Republican lawmaker has promised to take action on the ban.
The rule ends the inclusion of medical debt on credit reports and prevents lenders from using certain medical information in loan decisions. It is expected to remove an estimated $49 billion in medical bills from the credit reports of about 15 million consumers, which would likely raise credit scores and make it easier for some people to obtain mortgages, according to the bureau. The measure is scheduled to take effect 60 days after it is published in the Federal Register. But the Consumer Data Industry Association, which represents credit bureaus such as TransUnion, Experian and Equifax, and ACA International, which represents debt collectors, argue that the rule violates the Fair Credit Reporting Act and the bureau lacks the authority to issue such a ban. In addition to the lawsuits, GOP Rep. French Hill, who chairs the House Financial Services Committee, last week blasted the bureau’s director, Rohit Chopra, for issuing the final rule.
Quick Fix:
Place all state legislators, Congressman and all other government workers on a HDHP ($10,000 deductible) for a three-year tour of duty and unleash Vinny and Guido from ABC Collection Corp on the government employee masses. Usain Bolt would finish dead last in a 100 meter sprint to the capitol to change this dysfunctional system.
Bottom line:
A)Made up and inflated chargemaster bills that have no rational relation to what the facility collects or its costs and have no bearing on creditworthiness;
B) If medical bills can no longer impair any meaningful credit decision, fear mongering by the BUCAH’s (logo renting); traditional insurance becomes almost meaningless;
C) Vinny and Guido seek employment at the Salvation Army to repent for past sins;
D) Plan sponsor recommendation in the event that this regulation is actually implemented: I would RBP every single facility in the US ( who needs a contract/see above) and make the providers prove up that the bills are reasonable;
E) The local judge ( The Honorable Billy Bob Hatfield) would create the local market for the price of medical services. “You mean to tell me that you marked up these services 17,543%? “;
F) Nobody wants that… .
