Latest news with #medicaldebt
CBS News
3 days ago
- Health
- CBS News
More than 40,000 people in Pittsburgh had their medical debt erased. Here's who qualified.
More than 40,000 people in Pittsburgh will soon learn their medical debt has been erased. Pittsburgh City Councilman Bobby Wilson said more than 43,000 Pittsburgh residents have had $58 million in medical debt cleared thanks to the city's partnership with Undue Medical Debt, a non-profit organization in Boston that works to end medical debt. The organization said it has helped relieve more than $20.3 billion in medical debt. Wilson said in a news release on Monday that "this milestone" comes after legislation that authorized Pittsburgh to contract with Undue Medical Debt to identify and erase qualifying medical debt held by city residents. "I'm thrilled to partner with the City of Pittsburgh on this transformative medical debt relief initiative that will bring much-needed good news to thousands of residents," Undue Medical Debt President and CEO Allison Sesso said in Wilson's news release. "Medical debt is both a financial and emotional burden that forces families to make difficult decisions and often prevents patients from getting the care they need." To qualify, Pittsburgh residents had to have a household income no higher than 400% of the federal poverty level or have medical debt equal to 5% of their annual income. There was no application process, as qualified residents were found through hospitals, health care providers and debt collectors. Pittsburghers will begin getting letters with details this week. "No one should be burdened simply because they got sick. Relieving this debt will have a significant impact on the lives of many Pittsburghers," Wilson said in the news release.
Yahoo
4 days ago
- Business
- Yahoo
US Rule Keeping Medical Debt Off Credit Reports Is Now Gone: 3 Things To Do Now
You may be wondering what a judge's decision to vacate a rule about medical debt and credit reports means for your money. According to CNN, a judge said the Biden-era rule keeping medical debt off credit reports exceeded the Consumer Financial Protection Bureau's authority under the Fair Credit Reporting Act. Be Aware: Learn More: Here are some things to do now in the wake of this ruling. Also see six places that could get rid of your medical debt. What the Ruling Means The overturning of this rule means that unpaid medical bills will remain on credit reports. According to CNN, when the ruling was issued, the bureau said those who have medical debt on their credit reports could have seen an average 20-point increase in their credit scores. Additionally, the rule could have led to the approval of about 22,000 more mortgages each year. Further, the rule was expected to have removed nearly $50 billion in medical bills from the credit reports of around 15 million people, per CNN. Some consumers were also hopeful the rule would have banned lenders from using part of their medical information in loan decisions. Proponents of overturning the bill claim that it would harm the accuracy of credit reports and increase financial system risks, per CNN. Check Out: What You Can Do Now Even with this rule overturned, you still have options for trying to deal with unpaid medical debt and removing it from your credit report. Dispute Debt As noted by CBS News, one step may be to dispute medical bills you don't actually owe. After all, errors in billing and reporting are common in healthcare. Look Into Debt Settlement You may be able to negotiate a settlement for less than the full amount owed. Be sure to put any agreement in writing before you send in that payment. Explore Financial Assistance Options Now may be a great time to look into assistance options for paying your medical bills. Many healthcare providers offer at least some type of assistance that may help you. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 7 Things You'll Be Happy You Downsized in Retirement 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) This article originally appeared on US Rule Keeping Medical Debt Off Credit Reports Is Now Gone: 3 Things To Do Now Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-07-2025
- Business
- Yahoo
A judge blocked a rule to drop medical debt from credit reports. What now?
A recent federal court ruling overturned a Biden-era ban on medical debt in credit reports just as access to healthcare and health insurance is becoming more fragile. The decision could thwart the hopes of an estimated 15 million Americans who might have seen some relief ahead of expected hikes to healthcare premiums, the end of enhanced marketplace subsidies, and an anticipated increase in the number of Americans without insurance. 'We're really concerned that with the loss of insurance altogether, or healthcare becoming more expensive, we're just going to see more medical debt,' said Mona Shah, the senior director of policy and strategy at Community Catalyst, a national nonprofit healthcare advocacy organization. 'With this protection removed around credit reporting, it's going to impact people's overall economic well-being and ability to thrive.' A $49 billion reversal Earlier this month, a federal judge blocked a rule from the Consumer Financial Protection Bureau (CFPB), which had never taken effect, that would have stopped medical bills from appearing on credit reports and barred lenders from using such data to make lending decisions. The CFPB estimated the change could raise impacted consumers' credit scores by an average of 20 points. Healthcare providers typically don't report missed medical bills directly to credit bureaus, according to Equifax, so medical debt often doesn't wind up on a credit report until it's been reported to a collections agency. However, two trade associations successfully argued that the CFPB had overstepped its authority. Under the Trump administration, the CFPB also asked for the rule to be thrown out. In a July 11 ruling, Judge Sean Jordan of the US District Court for the Eastern District of Texas agreed with the trade groups. The ruling comes at an especially precarious time in healthcare. The tax bill signed into law by President Trump this month is expected to leave 10 million Americans without health insurance by 2034, largely due to changes in Medicaid. Meanwhile, enhanced premium tax credits that helped make Affordable Care Act marketplace coverage more affordable will expire at the end of this year after they were not extended in the tax bill, a change that will help contribute to the largest premium increases seen in years in 2026. The end of the subsidies is expected to leave an estimated 4.2 million people uninsured. 'Having more people lose Medicaid and become uninsured, and also lower-income adults losing subsidized marketplace coverage and becoming uninsured, is going to significantly increase medical debt,' said Fredric Blavin, a senior fellow and researcher at the Urban Institute, a Washington-based think tank. Under the Biden administration, the CFPB estimated that removing medical bill information could have wiped $49 billion off the credit reports of about 15 million Americans, noting that medical billing information often contained errors and was a poor predictor of a consumer's creditworthiness. Lower credit scores can damage a person's ability to rent a home, obtain a credit card with a favorable rate, and even impact their job search. In public comments supporting the rule, many Americans shared stories of how medical bills had weighed on their credit, including cancer patients, people who had been in car wrecks, and more. Read more: How are credit scores calculated? Sign up for the Mind Your Money weekly newsletter By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy What should consumers do now? Credit reporting agencies had already voluntarily decided in April 2023 to wipe medical collection debt from consumer credit reports if the balance was below $500. A year earlier, paid medical collection debt was also dropped from credit reports, and consumers were given one year to pay down medical collection debt before it started appearing on their credit reports, rather than six months. Additionally, the CFPB noted that FICO and VantageScore had previously both 'decreased the degree to which medical bills impact a consumer's score.' These combined changes dropped medical debt in collections from most consumers' credit reports, the Urban Institute found, leaving about 4.1% of adults with such data on their records in August 2024, down from 12.6% in February 2022. Additionally, 14 states have provisions in place to remove medical collection debt from credit reports. 'We expect more states to take the same initiative moving forward,' said Breno Braga, a senior fellow and researcher at the Urban Institute. Still, consumers are left with the onerous job of keeping up with these changes and staying on top of their credit as they face mounting bills — along with the resumption of delinquent student loans hitting credit scores. Consumers should regularly check their mail and email for information concerning their credit, while also carefully examining the bills to determine what they owe and what they might be able to contest. When it comes to unaffordable medical care, consumers can ask healthcare providers about financial assistance options. Read more: How to check your credit score for free 'It's really just vigilance and trying to understand what's available in terms of assistance,' said Sarah Chenven, the CEO of Working Credit, a nonprofit organization that helps people build good credit. Consumers should also be cautious about signing up for medical credit cards with a 'deferred interest', said Shah with Community Catalyst, which may subject them to high, retroactive interest charges if they don't pay their bill in a certain promotional period. 'When patients are now faced with these difficult decisions of not being able to pay off these bills right away — worried about how it's going to impact their credit scores, losing their insurance, still needing healthcare — they may be lured into signing up for one of these payment products,' said Shah. Emma Ockerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her at Sign up for the Mind Your Money newsletter Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-07-2025
- Business
- Yahoo
A judge blocked a rule to drop medical debt from credit reports. What now?
A recent federal court ruling overturned a Biden-era ban on medical debt in credit reports just as access to healthcare and health insurance is becoming more fragile. The decision could thwart the hopes of an estimated 15 million Americans who might have seen some relief ahead of expected hikes to healthcare premiums, the end of enhanced marketplace subsidies, and an anticipated increase in the number of Americans without insurance. 'We're really concerned that with the loss of insurance altogether, or healthcare becoming more expensive, we're just going to see more medical debt,' said Mona Shah, the senior director of policy and strategy at Community Catalyst, a national nonprofit healthcare advocacy organization. 'With this protection removed around credit reporting, it's going to impact people's overall economic well-being and ability to thrive.' A $49 billion reversal Earlier this month, a federal judge blocked a rule from the Consumer Financial Protection Bureau (CFPB), which had never taken effect, that would have stopped medical bills from appearing on credit reports and barred lenders from using such data to make lending decisions. The CFPB estimated the change could raise impacted consumers' credit scores by an average of 20 points. Healthcare providers typically don't report missed medical bills directly to credit bureaus, according to Equifax, so medical debt often doesn't wind up on a credit report until it's been reported to a collections agency. However, two trade associations successfully argued that the CFPB had overstepped its authority. Under the Trump administration, the CFPB also asked for the rule to be thrown out. In a July 11 ruling, Judge Sean Jordan of the US District Court for the Eastern District of Texas agreed with the trade groups. The ruling comes at an especially precarious time in healthcare. The tax bill signed into law by President Trump this month is expected to leave 10 million Americans without health insurance by 2034, largely due to changes in Medicaid. Meanwhile, enhanced premium tax credits that helped make Affordable Care Act marketplace coverage more affordable will expire at the end of this year after they were not extended in the tax bill, a change that will help contribute to the largest premium increases seen in years in 2026. The end of the subsidies is expected to leave an estimated 4.2 million people uninsured. 'Having more people lose Medicaid and become uninsured, and also lower-income adults losing subsidized marketplace coverage and becoming uninsured, is going to significantly increase medical debt,' said Fredric Blavin, a senior fellow and researcher at the Urban Institute, a Washington-based think tank. Under the Biden administration, the CFPB estimated that removing medical bill information could have wiped $49 billion off the credit reports of about 15 million Americans, noting that medical billing information often contained errors and was a poor predictor of a consumer's creditworthiness. Lower credit scores can damage a person's ability to rent a home, obtain a credit card with a favorable rate, and even impact their job search. In public comments supporting the rule, many Americans shared stories of how medical bills had weighed on their credit, including cancer patients, people who had been in car wrecks, and more. Read more: How are credit scores calculated? Sign up for the Mind Your Money weekly newsletter By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy What should consumers do now? Credit reporting agencies had already voluntarily decided in April 2023 to wipe medical collection debt from consumer credit reports if the balance was below $500. A year earlier, paid medical collection debt was also dropped from credit reports, and consumers were given one year to pay down medical collection debt before it started appearing on their credit reports, rather than six months. Additionally, the CFPB noted that FICO and VantageScore had previously both 'decreased the degree to which medical bills impact a consumer's score.' These combined changes dropped medical debt in collections from most consumers' credit reports, the Urban Institute found, leaving about 4.1% of adults with such data on their records in August 2024, down from 12.6% in February 2022. Additionally, 14 states have provisions in place to remove medical collection debt from credit reports. 'We expect more states to take the same initiative moving forward,' said Breno Braga, a senior fellow and researcher at the Urban Institute. Still, consumers are left with the onerous job of keeping up with these changes and staying on top of their credit as they face mounting bills — along with the resumption of delinquent student loans hitting credit scores. Consumers should regularly check their mail and email for information concerning their credit, while also carefully examining the bills to determine what they owe and what they might be able to contest. When it comes to unaffordable medical care, consumers can ask healthcare providers about financial assistance options. Read more: How to check your credit score for free 'It's really just vigilance and trying to understand what's available in terms of assistance,' said Sarah Chenven, the CEO of Working Credit, a nonprofit organization that helps people build good credit. Consumers should also be cautious about signing up for medical credit cards with a 'deferred interest', said Shah with Community Catalyst, which may subject them to high, retroactive interest charges if they don't pay their bill in a certain promotional period. 'When patients are now faced with these difficult decisions of not being able to pay off these bills right away — worried about how it's going to impact their credit scores, losing their insurance, still needing healthcare — they may be lured into signing up for one of these payment products,' said Shah. Emma Ockerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her at Sign up for the Mind Your Money newsletter Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBS News
22-07-2025
- Health
- CBS News
Metro Detroiters struggling with medical debt hopeful for relief
Medical expenses, whether big or small, weigh on almost everyone. For many Michiganders, one bill can often lead to a spiral into serious debt. Carrecia Watkins knows that struggle firsthand after getting into a car accident back in 2023. "A big, huge impact that I wasn't ready for," Watkins said. "Someone hit me, and they were totally at fault, but because she didn't have any insurance, I was stuck with the bill." Still dealing with long-lasting injuries, Watkins now has close to $5,000 in medical bills and ongoing therapy costs for her recovery. "Now I've got this hefty medical bill that I have to pay, and there's nothing I can do," Watkins said. Watkins' story is one of thousands that pushed the Michigan Gov. Gretchen Whitmer's administration to announce a new partnership to address the growing problem. Working with the national nonprofit Undue Medical Debt, the plan takes on the medical bills at discounted rates and then forgives the charges. "This program just takes another burden off the table," said Dr. Kimberly Farrow, president and CEO of Central City Health, a community health center in downtown Detroit. Her team works directly with patients who may be uninsured or underinsured — many of whom would benefit directly from the new debt relief plan. "It's touching so many people on that spectrum, people who are severely impoverished and those who are like the working poor. They're working every day, but they just can't afford their medical bills," Farrow said. Under the current plan, nearly 210,000 Michiganders, including many who are patients at places like Central City Health, will get close to $144 million in medical debt completely erased. CBS News Detroit took a closer look and found that the program will help anyone who earns four times or less than the federal poverty level, or if their medical debts are equal to 5% or more of their annual income. "This program really provides relief for both the hospital systems that take care of our people, but also the patients that are struggling day to day to put food on the table," Farrow said. This first round clears outstanding bills for thousands of patients in many nearby Michigan counties, including Wayne, Macomb and St. Clair. People who qualify will start receiving information on their status in the coming months.
