Senators Advocate for Medical Debt Reform in New Bill

In early December, Senators Murphy and Van Hollen introduced a new bill focused on medical debt reform. The proposed Strengthening Consumer Protections and Medical Debt Collection Act aims to mitigate the impact of medical debt on consumers. Both senators have long been advocates in this domain. They previously sought to connect COVID relief funds with restrictions on aggressive debt collection practices. This bill comes at a crucial time. Rising costs and inflation have made medical bills harder to manage.

The bill expands federal protections for patients. It extends requirements currently applicable to non-profit hospitals to other healthcare providers. Hospitals, now required to inform patients of financial assistance, may face more stringent requirements. These requirements would apply to all healthcare entities, not just non-profits. This inclusion is significant due to healthcare consolidation and the presence of for-profit hospitals in many areas. The bill also limits recoverable amounts from uninsured patients to align with typical insurance payments.

Additionally, the bill mandates the creation of a national database on medical debt. The Secretary of Health & Human Services is tasked with establishing this database. This publicly available and searchable resource would collect data from healthcare entities. Currently, there is no comprehensive national data set on medical debt. Existing data often comes from fragmented sources. A centralized database would enhance understanding and solutions.

The bill also directs the Consumer Financial Protection Bureau to report on the database’s data annually. Such reporting aims to evaluate the database’s effectiveness. This step could provide insights into medical debt and how to address it.

Does this bill help patients? To a significant extent, yes. The act aims to reduce the harm caused by aggressive debt collection tactics. It expands protections to all healthcare providers. Patients would be better informed about financial assistance and their bills. This transparency may help avoid medical debt. The bill promotes best practices in collection methods and data transparency.

However, some areas need further attention. The bill should clarify processes for referring patients to financial assistance. More guidelines are needed for community referrals. Automatic tools for qualifying individuals for help should be encouraged to simplify the process.

The bill should also extend limits on charges for uninsured patients to all providers. This change would provide greater consumer protection. Additionally, healthcare providers need support and a reasonable timeframe to meet new data reporting requirements. Linking medical debt data to health outcomes could also provide valuable insights and drive better care quality.

While the bill addresses harmful collection practices and medical debt surveillance, it doesn’t tackle out-of-pocket costs directly. Patients continue to grapple with high deductibles, co-pays, and limited coverage. More discussions on these issues are anticipated.

We remain hopeful that 2023 will bring concrete policy changes for those struggling with medical debt. As an organization dedicated to assisting with healthcare claims, we see this bill as a crucial step forward. Addressing medical debt is essential, and we are committed to helping alleviate this burden.