CFPB Report Addresses Consumer Medical Debt
Medical debt is a serious problem in Illinois and across the country, and consumers routinely struggle with bills from health care. Even with health insurance, consumers still routinely pay extensive costs for even routine health care, and unexpected medical events can result in thousands of dollars of medical debt that they were not expecting. Indeed, as a result of medical debt, many Americans ultimately file for consumer bankruptcy. A recent report from the Consumer Financial Protection Bureau (CFPB) emphasizes there are numerous issues to consider when it comes to medical debt in the United States, including the way in which debt is incurred and managed by health care systems.
If you have questions about handling medical debt, or if you want to learn more about filing for consumer bankruptcy, one of our experienced Oak Park consumer protection attorneys can provide you with more information. In the meantime, we want to provide you with more information about the CFPB report.
Medical Bills Resulting from Emergencies and Unexpected Events
The CFPB report underscores that a majority of major medical bills in America are “often incurred through unexpected and emergency events,” which are frequently “subject to opaque pricing, and involve complicated insurance or charity care coverage and pricing rules.” When patients receive emergency care, they often do not agree to any specific type of billing in advance, and instead receive a substantial bill afterward.
When patients receive medical bills they cannot pay, they often find themselves in what CFPB Director Rohit Chopra describes as a “doom loop between their medical provider and insurance company.” Many patients who have unpaid medical bills because they cannot afford to pay return to emergency departments in order to receive subsequent care, incurring additional and substantial medical bills. Those bills ultimately often go to collection agencies or debt collectors, and those patients frequently find themselves with “reduced access to credit, increased risk of bankruptcy, avoidance of medical care, and difficulty securing employment.” In some cases, medical bills are not even accurate, but patients do not know how to properly construe the bill or how to dispute erroneous charges.
Erroneous Medical Bills and Charges
The CFPB also reported on how many charges on medical bills are inaccurate, or are erroneous. While the patient may owe payment for care, medical bills—especially those from emergency departments and walk-in facilities—can have lists of charges that are difficult for patients to understand, and they often assume they owe the full amount. As interest gets added to unpaid bills and as those bills go to debt collectors.
Consumers deserve to have only legitimate charges on their medical bills, but they also should not have to grapple with insurmountable debt due to health care charges. The report underscores that approximately 20% of American households currently have medical debt, and nearly 60% of debt that has gone to collections is medical debt.
Contact Our Oak Park Bankruptcy Attorneys
If you have questions about managing medical debt, or if you want to learn more about consumer bankruptcy, one of our experienced Oak Park bankruptcy lawyers can assist you. We can provide you with more information about your rights when it comes to debt collection and how bankruptcy might be able to help you. Contact the Emerson Law Firm today.
See Related Blog Posts:
How Consumer Bankruptcy Reflects Larger Economic Trends
Options for Keeping Your House in a Bankruptcy Case
If you have questions about handling medical debt, or if you want to learn more about filing for consumer bankruptcy, one of our experienced Oak Park consumer protection attorneys can provide you with more information. In the meantime, we want to provide you with more information about the CFPB report.
Medical Bills Resulting from Emergencies and Unexpected Events
The CFPB report underscores that a majority of major medical bills in America are “often incurred through unexpected and emergency events,” which are frequently “subject to opaque pricing, and involve complicated insurance or charity care coverage and pricing rules.” When patients receive emergency care, they often do not agree to any specific type of billing in advance, and instead receive a substantial bill afterward.
When patients receive medical bills they cannot pay, they often find themselves in what CFPB Director Rohit Chopra describes as a “doom loop between their medical provider and insurance company.” Many patients who have unpaid medical bills because they cannot afford to pay return to emergency departments in order to receive subsequent care, incurring additional and substantial medical bills. Those bills ultimately often go to collection agencies or debt collectors, and those patients frequently find themselves with “reduced access to credit, increased risk of bankruptcy, avoidance of medical care, and difficulty securing employment.” In some cases, medical bills are not even accurate, but patients do not know how to properly construe the bill or how to dispute erroneous charges.
Erroneous Medical Bills and Charges
The CFPB also reported on how many charges on medical bills are inaccurate, or are erroneous. While the patient may owe payment for care, medical bills—especially those from emergency departments and walk-in facilities—can have lists of charges that are difficult for patients to understand, and they often assume they owe the full amount. As interest gets added to unpaid bills and as those bills go to debt collectors.
Consumers deserve to have only legitimate charges on their medical bills, but they also should not have to grapple with insurmountable debt due to health care charges. The report underscores that approximately 20% of American households currently have medical debt, and nearly 60% of debt that has gone to collections is medical debt.
Contact Our Oak Park Bankruptcy Attorneys
If you have questions about managing medical debt, or if you want to learn more about consumer bankruptcy, one of our experienced Oak Park bankruptcy lawyers can assist you. We can provide you with more information about your rights when it comes to debt collection and how bankruptcy might be able to help you. Contact the Emerson Law Firm today.
See Related Blog Posts:
How Consumer Bankruptcy Reflects Larger Economic Trends
Options for Keeping Your House in a Bankruptcy Case
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