Medical Debt: States Step Up as Federal Protections Wane
New Initiatives Emerge Amid Concerns Over Trump Administration’s Plans
Worried that President-elect Donald Trump will curtail federal efforts to take on the nation’s medical debt problem, patient and consumer advocates are looking to states to help people who can’t afford their medical bills or pay down their debts.
"The election simply shifts our focus," said Eva Stahl, who oversees public policy at Undue Medical Debt, a nonprofit that has worked closely with the Biden administration and state leaders on medical debt. "States are going to be the epicenter of policy change to mitigate the harms of medical debt."
Strengthening Oversight
Several states are looking to strengthen oversight of medical credit cards and other financial products that can leave patients paying high interest rates on top of their medical debt. Some states are also exploring new ways to compel hospitals to bolster financial aid programs to help their patients avoid sinking into debt.
"There’s an enormous amount that states can do," said Elisabeth Benjamin, who leads health care initiatives at the nonprofit Community Service Society of New York. "Look at what’s happened here."
New York State’s Efforts
New York state has enacted several laws in recent years to rein in hospital debt collections and to expand financial aid for patients, often with support from both Democrats and Republicans in the legislature. "It doesn’t matter the party. No one likes medical debt," Benjamin said.
National Efforts
President Joe Biden’s administration has proved to be an ally in state efforts to control health care debt. Such debt burdens 100 million people in the United States, a KFF Health News investigation found.
Led by Biden appointee Rohit Chopra, the Consumer Financial Protection Bureau has made medical debt a priority, going after aggressive collectors and exposing problematic practices across the medical debt industry. Earlier this year, the agency proposed landmark regulations to remove medical bills from consumer credit scores.
Conclusion
As the Trump administration prepares to take office, states are poised to play a critical role in protecting patients from medical debt. By strengthening oversight of medical credit cards, compelling hospitals to provide financial aid, and enacting credit reporting bans, states can help ensure that patients are not buried under a mountain of medical debt.
FAQs
Q: What are the main concerns about medical debt?
A: Patients who cannot afford their medical bills or pay down their debts are at risk of falling into debt, which can have serious consequences on their credit scores and financial well-being.
Q: What are states doing to address medical debt?
A: Several states are taking steps to strengthen oversight of medical credit cards, compel hospitals to provide financial aid, and enact credit reporting bans to protect patients from medical debt.
Q: What is the role of the Consumer Financial Protection Bureau in addressing medical debt?
A: The CFPB has made medical debt a priority, going after aggressive collectors and exposing problematic practices across the medical debt industry. The agency has also proposed landmark regulations to remove medical bills from consumer credit scores.
Q: What are the implications of the Trump administration’s plans for medical debt?
A: If the Trump administration cuts federal funding for health insurance programs such as Medicaid and the insurance marketplaces established through the Affordable Care Act, it could increase medical debt for millions of Americans.
