When the coronavirus pandemic settled into the U.S. economy, a tailspin developed as local and state governments struggled to contain the virus through quarantine orders and business closings. This event cost 30 million Americans their jobs and as a result, 12 million of those workers no longer have employer-based health insurance.
The U.S. workforce now faces a double jeopardy scenario; they must risk major illness while trying to meet day-to-day living expenses such as housing and food. The average cost of treatment for the COVID-19 virus is $30,000, which has forced some into medical debt without much of a choice, or options.
The cost of medical care in America ranks as one of the highest in the world, yet quality of care and access continues to rank below comparable wealthy countries. This burden has not gone unnoticed by state and federal governments, which recognizes citizens are suffering major penalties on their credit reports because of unaffordable healthcare costs.
The Consumer Financial Protection Bureau, (CFPB) state lawmakers and debt counseling agencies have tried to correct the distorted view of an individual’s creditworthiness because of excessive medical debt in a system struggling with affordability and access.
The Consumer Financial Protection Bureau introduced a 180-day grace period in 2017 that allows time for a medical bill to be fully processed and appropriate billing to be completed before claiming a debt is overdue. Additionally, this allows patients time to dispute charges or seek financial assistance for the medical expense before it hits their credit report. During the current pandemic this grace period can offer much needed assistance for those burdened with unexpected or excessive medical debt.
At the beginning of 2020, four more states joined numerous others in passing legislation that reigned in surprise billing practices. These charges often catch insurers unexpectedly due to unknowingly receiving services at an out-of-network provider. These new state efforts to curb these bills add important protections for consumers, including the prohibition of balance billing and extends protections to emergency departments.
While there are many more proposed legislative solutions to mitigate overly punitive damages caused by medical debt, there still isn’t a broad enough consensus for any to earn congressional approval.
Individuals needing medical care are often caught in an unfortunate scenario during this national crisis: healthcare, home or food? For many, postponing their health needs seems the only viable choice from a financial point-of-view, but the long-term repercussions often end up costing much more in treatment costs.
There are several options available to achieve the level of healthcare needed as well as allowing for financial means to do so without going into staggering debt. Consider some of the steps below to successfully manage medical debt and avoid collections:
The fact 12 million Americans are no longer covered under employee-based healthcare shines an intense spotlight on the need for accessible and affordable healthcare in our country, as well as universal medical debt management regulations and assistance. During this time consumers should not have to decide between healthcare and basic human needs. First, consumers need to look at existing assistance and specific medical programs offered at state and local levels, in addition to working with medical providers on reducing costs and agreeing on affordable payment plans.
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