Americans often “forced” to pay medical bills they don’t owe, feds say


It might come as little shock that many Americans are besieged by medical bills, particularly because the COVID-19 pandemic grinds on. Perhaps extra eye-opening is that that is often for debt they have already paid or don’t really owe.

In a brand new report, the Consumer Financial Protection Bureau discovered that individuals’s most typical debt assortment complaints final year had to do with efforts to acquire on a invoice that they stated didn’t belong to them. 

“In medical debt collection complaints, this issue makes up nearly half of complaints and, importantly, complaint volume about this topic has been increasing,” the federal company stated, noting that such bills often find yourself on folks’s credit score stories and power them onto a bureaucratic hamster wheel to clear their monetary file. 

Between 2018 and 2021, public complaints about assortment makes an attempt for medical bills shoppers stated they didn’t owe jumped 31%, the CFPB discovered. Roughly 1 in 5 U.S. households carries debt associated to well being care, in accordance to federal information. Medical bills are essentially the most generally reported merchandise on client credit score stories, in accordance to regulators.

COVID checks are supposed to be coated but some persons are receiving massive bills


“People also report learning of an outstanding medical bill only after experiencing a drop in their credit score and being told that only paying the bill would remove the negative collections information from their credit report,” the CFPB added. 

750,000 complaints

The CFPB stated that in 2021 it despatched greater than 750,000 complaints to roughly 3,400 corporations for them to review. Among the company’s different findings:

  • The median medical debt within the U.S. is $310.
  • In 2021, 15% of debt assortment complaints had been about makes an attempt to acquire on a medical invoice.
  • Consumers receiving assortment notices for a medical invoice often report being unfamiliar with the listed supplier.
  • Consumers additionally report that assortment notices often include massive quantities of personal medical data.
  • Many Americans say they pay medical bills to keep away from adversarial monetary and privateness penalties — even when they really feel the debt is not legitimate.
  • Communities with extra minority or low-income people, veterans, and younger adults are extra seemingly to have medical bills reported on their credit score stories.

“Many Americans feel forced to pay medical bills that they have already paid or never owed to begin with,” CFPB Director Rohit Chopra stated in an announcement. “The credit reporting system should not be used as a weapon to coerce patients into paying medical bills they do not owe.”

In March, main credit standing companies Equifax, Experian and TransUnion stated they deliberate to drop most medical debt from shoppers’ credit score stories beginning this summer season. 

Congress final year sought to tackle the issue of runway medical bills by passing the “No Surprises Act,” which protects folks with medical insurance from getting billed for receiving emergency medical care exterior of an insurer’s community. 

Under the regulation sufferers are nonetheless accountable for any deductibles and copays they usually would have to pay underneath their plan, however they might solely be billed at their plan’s in-network rate.

Alain Sherter

Alain Sherter covers business and financial affairs for