Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

New York removes medical debt from credit reports
wwnytv.com ^ | December 14, 2023

Posted on 12/16/2023 8:47:11 AM PST by lowbridge

Unpaid medical debt will no longer appear in New York residents’ credit reports under a bill signed into law by Gov. Kathy Hochul on Wednesday.

The law prohibits credit agencies from collecting information about or reporting medical debt. The law also bans hospitals and health care providers in the state from reporting such debt to the agencies.

New York is the second state after Colorado to enact such a law. A similar nationwide measure is being considered by the federal Consumer Financial Protection Bureau.

“Medical debt is such a vicious cycle. It truly hits low-income earners, but it forces them to stay low-income earners because they can’t never get out from under it,” Hochul, a Democrat, said at the bill- signing ceremony in New York City.

The new law will take effect immediately. “No one should ever have to make a horrible choice between their physical health and their financial health,” Hochul said.

The new law won’t necessarily stop all medical debt from affecting New Yorkers’ credit scores. It won’t apply to debt that is charged to a credit card, unless the card was issued specifically for health services, and it doesn’t apply to out-of-state health care providers.

People hit with hefty, sometimes unexpected medical bills can experience roadblocks in renting a house, securing car loans, or getting a new job because of a bad credit report. Credit reports are meant to measure how responsible a person is with their money, but they don’t account for life’s unexpected realities, like suffering from a disease or injury, supporters of the law argued.

(Excerpt) Read more at wwnytv.com ...


TOPICS: Business/Economy; News/Current Events; US: New York
KEYWORDS: creditreports; debt; medical; newyork
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061 next last
To: stanne

The issue is what is a credit report.

If it does not include material information of interest to potential creditors then it becomes something new—an unreliable credit report.

This is like saying that a basketball team is not allowed to look at height when evaluating prospects.

Yeah—it is unfair that short folks are discriminated against by basketball teams.

But—putting them on the team anyway does not solve anything for very long.


21 posted on 12/16/2023 9:49:40 AM PST by cgbg ("Our democracy" = Obey or get canceled.)
[ Post Reply | Private Reply | To 19 | View Replies]

To: lowbridge
Medical debt is such a vicious cycle. It truly hits low-income earners, but it forces them to stay low-income earners because they can’t never get out from under it,” Hochul, a Democrat, said at the bill- signing ceremony in New York City.

BAD STOCK MARKET INVESTMENT debt is such a vicious cycle. It truly hits low-income earners, but it forces them to stay low-income earners because they can’t never get out from under it.

STUDENT debt is such a vicious cycle. It truly hits low-income earners, but it forces them to stay low-income earners because they can’t never get out from under it.

RACE TRACK debt is such a vicious cycle. It truly hits low-income earners, but it forces them to stay low-income earners because they can’t never get out from under it.

QUESTION: Can Hochul identify a SINGLE form of debt that isn't "cruel" and doesn't hit primarily low-income people?

Well, at least this cockamamie law applies only to earners, right? So people on welfare, retirees, etc. won't be able to profit from it.

Regards,

22 posted on 12/16/2023 9:51:51 AM PST by alexander_busek (Extraordinary claims require extraordinary evidence.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: alexander_busek

Yup—another variation on this theme is college education and college loans.

The “experts” noticed that folks with college degrees had much higher lifetime earnings than those without college degrees.

They concluded it was unfair that black people did not have as many college degrees as white people.

Therefore they came up with “affirmative action” to get more black kids admitted to college—and college loans to help the pay for it.

What they have actually done is created greater poverty for many blacks—who borrowed money to pay for college, realized they could not cut it—and dropped out with the worst of both worlds—a ton of debt and no college degree.

Even for those blacks who did get college degrees the majority still ended up in major trouble—deep in debt and often lacking the skills to survive long in the cold cruel job world where a college degree may get you in the door but won’t keep you there for long.


23 posted on 12/16/2023 9:59:46 AM PST by cgbg ("Our democracy" = Obey or get canceled.)
[ Post Reply | Private Reply | To 22 | View Replies]

To: cgbg

Short people are short because of genetics. There’s nothing they can do about their height on a basketball court

Credit scores reflect people’s borrowing history

If they have to borrow to pay a medical account that is something they can’t have planned for in this economy. No one says I have to plan my spending around the chance I might get cancer. The best medical insurance covers 80%. The best out of work plan doesn’t cover more than 10% of salary for time away from work

It’s tens of thousands. No one is going to plan for that in this economy. It’s a risk. They’re penalized enough for being short of money, dinging them on a credit report takes more money from them

Who says, I need to put away $50 k in case I get cancer in an economy where a high majority is paycheck to paycheck?


24 posted on 12/16/2023 10:00:59 AM PST by stanne
[ Post Reply | Private Reply | To 21 | View Replies]

To: stanne

The basketball analogy is valid.

An unforeseen medical expense is not genetic but for these purposes it might as well be.

It is an unfair random occurrence.

If we change the rules to compensate people for unfair random occurrences we are just lying to ourselves.

Life is unfair—denying it just creates new problems.


25 posted on 12/16/2023 10:04:03 AM PST by cgbg ("Our democracy" = Obey or get canceled.)
[ Post Reply | Private Reply | To 24 | View Replies]

To: ProtectOurFreedom
The $300 is the bill rate, which is sort of like a sticker price on a piece of merchandise (can also be called the rack rate).

The $100 actually billed to the insurance carrier is mostly from a negotiated contract price for the service or good. Or it's the Medicare rate if you are a Medicare patient.

Normally Medicare pays 80%, or $80 for a $100 "invoice". The patient is responsible for the 20% difference. In certain cases, the patient balance is written off if the patient qualifies based on income and other factors. If you are actually paying the balance, the provider has no reason to find out if you qualify for a write-off.

And the whole system just gets more complicated from there.

26 posted on 12/16/2023 10:11:38 AM PST by Bernard (We honor veterans who fought to keep this country from turning into what it now is. --Argus Hamilton)
[ Post Reply | Private Reply | To 13 | View Replies]

To: cgbg

“ If we change the rules to compensate people for unfair random occurrences we are just lying to ourselves.”

Silly.

The rules of the basketball court are the same as any physical measurement rules

Credit score rules are made up as evidenced by this ruling. Same as the overinflated rulings of medical expenses

Hospital administrators and doctors are famous for being stupid and overinflated with economics

Pharmaceutical companies sit on 500 billion while charging too much for drugs to old people with no active income

Basketball ? What?

No


27 posted on 12/16/2023 10:17:37 AM PST by stanne
[ Post Reply | Private Reply | To 25 | View Replies]

To: stanne

Credit reports are used to evaluate whether or not potential creditors can pay their bills.

If they become unreliable then folks who loan money will have to use other metrics—and they may be metrics you don’t like.

They may have to violate your privacy in a dozen sneaky ways since they can’t rely on credit reports—or they may refuse to loan you any money at all no matter who you are because they have no reliable metric.

There is no free lunch here.


28 posted on 12/16/2023 10:24:33 AM PST by cgbg ("Our democracy" = Obey or get canceled.)
[ Post Reply | Private Reply | To 27 | View Replies]

To: Bernard

“sticker price”

Thanks for the explanation. I got more out of your explanation than anything the DME or insurance company explained.

So the “bill rate” is entirely fictitious like “sticker price” on so many products?


29 posted on 12/16/2023 10:25:37 AM PST by ProtectOurFreedom (“Occupy your mind with good thoughts or your enemy will fill them with bad ones.” ~ Thomas More)
[ Post Reply | Private Reply | To 26 | View Replies]

To: ProtectOurFreedom
No, sometimes the bill rate is what is actually paid, but not very often. Most of the time, it exists as a starting point for price negotiations.

Before my time, but I think the disconnect between the bill rate and normal provider pricing expectations all started back in the 1960's, when Medicare first came into existence. Then private insurance got involved and things just got more and more complicated.

30 posted on 12/16/2023 10:41:08 AM PST by Bernard (We honor veterans who fought to keep this country from turning into what it now is. --Argus Hamilton)
[ Post Reply | Private Reply | To 29 | View Replies]

To: cgbg

Credit reports should -and DO as it turns out - leave out the insane cost of medical care

My mother told me once that when I was born my father had just got out of flying with the Marines they had no medical insurance yet. I cost $75

We have come to expect outrageousness in medicine. This ruling is a testament to medical cost outrageousness


31 posted on 12/16/2023 10:45:29 AM PST by stanne
[ Post Reply | Private Reply | To 28 | View Replies]

To: Made In The USA

i bought one of those unicorns.

It got cancer and I had to put it down. I couldn’t afford the veterinary bills.


32 posted on 12/16/2023 10:48:35 AM PST by Vermont Lt (Don’t vote for anyone over 70 years old. Get rid of the geriatric politicians.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: wildcard_redneck

Well, a federal law required them to publish their rates per procedure about ten years ago.

Now…understanding your procedure and everything it entails pretty much requires a degree in medical coding and hospital administrative procedures.

But…the prices are available.


33 posted on 12/16/2023 10:50:26 AM PST by Vermont Lt (Don’t vote for anyone over 70 years old. Get rid of the geriatric politicians.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: ProtectOurFreedom

I can answer that.

There is the retail price. That’s the $300.

Then there is the Medicare contract price. That is the price that Medicare tells providers it will pay. Honestly, that is the basis for most hospital based healthcare costs.

The insurance companies will look at the Medicare contract price and determine what their base will bear—that is, what do their customers need and what can they pay to insure a profit for the insurance company.

This is the price the insurance company will contract with your provider. That is the $100 price.

Since you haven’t hit your deductible or out of pocket, they will pay the 85% of their contract price. You owe the $16.

Think of the first price as the un-discounted suggested retail price. And no one pays retail.

In a lot of cases its the few thousand before the deductible that end up as bad debt for the hospitals. Unfortunately…it’s THAT money that ends up paying for the hospitals uncovered expenses.


34 posted on 12/16/2023 10:59:06 AM PST by Vermont Lt (Don’t vote for anyone over 70 years old. Get rid of the geriatric politicians.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: stanne

If someone is in the ICU, $12k is about one day of coverage. My wife was in cardiac care for two days, and it was about $8k a day. ICU is a step up.


35 posted on 12/16/2023 11:01:35 AM PST by Vermont Lt (Don’t vote for anyone over 70 years old. Get rid of the geriatric politicians.)
[ Post Reply | Private Reply | To 19 | View Replies]

To: Vermont Lt

Thanks, LT. I logged onto my insurance account yesterday and was astounded to see the total value of services provided to me this year was over $11,000. I’ve been to the doctor once, to Urgent Care once (COVID), had some routine lab work done, got the CPAP machine, and had a retina specialist examine my right eye. I couldn’t believe the total to-date is $11k.


36 posted on 12/16/2023 11:12:01 AM PST by ProtectOurFreedom (“Occupy your mind with good thoughts or your enemy will fill them with bad ones.” ~ Thomas More)
[ Post Reply | Private Reply | To 34 | View Replies]

To: alexander_busek

That’s one of your best posts ever.


37 posted on 12/16/2023 11:16:28 AM PST by steve86 (Numquam accusatus, numquam ad curiam ibit, numquam ad carcerem™)
[ Post Reply | Private Reply | To 22 | View Replies]

To: Vermont Lt

It’s outrageous


38 posted on 12/16/2023 11:20:00 AM PST by stanne
[ Post Reply | Private Reply | To 35 | View Replies]

To: ProtectOurFreedom

The medical billing sticker price is also called the “Paymaster” rate according to a long Fortune article I read several years ago. Fortunately there is no “adjusted market value” markup like at the car lots.


39 posted on 12/16/2023 11:26:42 AM PST by steve86 (Numquam accusatus, numquam ad curiam ibit, numquam ad carcerem™)
[ Post Reply | Private Reply | To 29 | View Replies]

To: stanne

If you look at the profit margins of most hospitals you would see it is usually less than 3%—at least on not for profit systems.

Where those hospitals are getting killed is on the cost of capital to stay up to date on the “tech” side. Most of them had bonds in the 4-5% range. They just went up to the 9% rate. For facilities with razor thin margins, this will be the death of the mid sized non profit. They are already cutting services left and right.

Nursing and support staff are in short supply. So those costs are skyrocketing.

Healthcare is already a controlled market because of Medicare. Dont let anyone kid you, the government already sets the price. And they are not keeping up.


40 posted on 12/16/2023 11:34:55 AM PST by Vermont Lt (Don’t vote for anyone over 70 years old. Get rid of the geriatric politicians.)
[ Post Reply | Private Reply | To 38 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson