Americans Are Drowning in Uncollected Medical Debt

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Medical debt is hurting the creditworthiness of 43 million Americans, and the systems in place to collect and report this debt can be challenging for people, according to a new report released on Thursday by the Consumer Financial Protection Bureau (CFPB).

“It’s hard for consumers to navigate the medical debt maze and come out with a clean credit report on the other side,” said CFPB director Richard Cordray in a statement. “Getting medical care should not make your credit report sick.” The CFPB study concluded that the process of billing for medical care can be confusing and the system for reporting overdue medical debt is haphazard. This could explain why half of all overdue debt on credit reports is now for medical expenses.

The report says one out of five credit reports now contains a black mark from overdue medical debt.

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1 thought on “Americans Are Drowning in Uncollected Medical Debt”

  1. The problem is that the average American cannot afford health insurance.
    Even if you have insurance it often does not cover you well.
    The reason that this is so is because not many Americans have a doctor with their best interests at heart. They are out there. There are good doctors. Under our system of government, we give billions away to foreign nations so they can maintain social medicine. But help the common person out there? Not without a whole lot of strings attached.
    One of the reasons is the doctor’s Union. I speak specifically of a professional organization called the American Medical Association. It started out good. But educated people know all about the various legislation caused by it to KEEP OUT real cures to diseases. Ask them about Bitter Almond as a treatment in cancer therapy? Or what they are legally bound to treat cancer with?
    Ask them about their relationship with the drug companies. Or being wined and dined by sales reps for those companies. Or about mandated education put on by the drug companies so that when a diagnosis is made they prescribe the correct medicine according to the drug company.
    Or about their track record with suppressing cures or potential cures. Or about the huge sum of money to get a new medicine to the public.
    The best covered people in our system are the ones that are all ready broke and on medicaid.
    Because in order to get treated for major illness in this country, there is a good chance it will cost half a million or more to cure you and they absorb everything you every earned by working for a living in the process.
    Our fellow nations often do not do that to their working people.
    Nor are their prescription costs anything like ours.
    The up front cost of becoming a doctor in this country is outrageous. So it is not all the doctor’s faults.
    Maintaining a staff to handle everything is another huge expense.
    I still remember my family doctor making house calls, his wife was his receptionist, and maybe one nurse assistant. He worked long hours. He got paid extremely poorly. And he died young.
    That has all gone away. If they are in it for the money, they are often in the wrong business because the average persons on their own can no longer afford to do it.
    What that means is that you have to group people together so that the one sick can afford to pay the funds to get well.
    It really hasn’t worked that well.

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