White House aiming to scrub medical debt from people’s credit scores, which could up ratings for mil

So you're a deadbeat who doesn't pay your bills and now no banks will give you a loan, whose fault is that?

Now what Biden is proposing is for those same dead beats to be able to qualify for loans that will be risky and when they don't repay those loans the costs of future loans for everyone else will go up.

 

The costs for everyone will go up?

You mean we can go from the most expensive healthcare in the world to the most expensive healthcare in the world?

I wonder at what point enough Americans will get fed up with the rampant price gouging?

 

I would rather see this than to see everyone paying for someone else's frat boy to go to Harvard. Having high medical bills does not show that you are a credit risk. It shows that you had a bad knee, etc.

 

They should add paying rent as a way to boost ones credit score.

 

Deadbeats? Aren't you sweet.

I hope you never have to experience severe illness or injury requiring extended hospital stays and other countless charges for medical goods and services. Until you do, perhaps it's best not to judge those of us who have.

 

That some people still have medical bills in America is a sign that we need universal healthcare. I don't get why there are still some people that don't want that.

 

Both of you have a good point. Some can't pay while others won't pay their medical bills. Those that can't pay are not deadbeats. Those that won't are.

 

When Obama forced his health insurance plan on all of us he said there we be no high medical costs. What went wrong?

 

The reason, according to Mahoney’s research, appears to tie into the decision by many states in the South to not expand Medicaid as allowed under the Affordable Care Act (ACA). By comparison, in states that chose to broaden their public health insurance for low-income individuals, total medical debt fell significantly more, and the rates at which their residents — including those who live in the lowest-income areas — accumulated new debt from one year to the next also declined.

Overall, annual rates of new medical debt fell roughly 50 percent from 2013 levels in states that expanded Medicaid, but they dropped only about 10 percent in states that didn’t. Moreover, the gap in amounts owed by high-income versus low-income residents widened in states that did not increase Medicaid eligibility under the ACA, while it narrowed in states that did.
https://siepr.stanford.edu/news/americas-medical-debt-much-worse-we-think

 

I heard once it gets to collection you can dispute it, and hipaa prevents them from sharing your info with the collections agency. No idea if that really works, I just pay my bills. But I’m union with awesome insurance so I don’t pay much of anything out of pocket.

 

Medical issues have ruined credit for a lot of people. But a credit rating is a metric, a measurement of the reliability of a person's credit. Why it's in that condition doesn't matter.
Such a plan would indeed tend to game the system into creating loans to people who couldn't repay the debt, leading to more credit difficulties.

It's not a matter of being sympathetic but of being realistic.
Bad credit debt losses are, as you point out, a component of the overall credit system. Things like shoplifting for example cause the value of lost merchandise to be recovered from the paying customers. The businesses have no choice-;losses have to be factored into prices- so everybody pays for those who steal, those who intentionally don't pay their bill, those who fail to prepare for their own future and find themselves unable to pay their bills. But it makes no sense to use the metrics of the system we need to keep it functional as some kind of hidden welfare gimmick, making the metric useless.

It does make sense that this would be a Biden scheme. He's yet to come up with anything that was actually wise and good for the nation.

 

Except they are probably incentivizing going to court to collect the debt instead of turning it over to a pennies on the dollar collector which will end up putting it right back on your credit report.

 

Getting rid of medical debt on your credit score doesn't get rid of the debt. The credit score is used to determine your ability to repay future loans, so if you hide debt from it, you are giving people to get more debt than they can afford to pay. I kind of think I know how this ends.

 

It's an interesting concept. While normal debt accrual can usually be controlled, true medical bills (for required services, not things like optional plastic surgery) are usually out of your control.

Not saying I'm for it, but it's something that could be considered...

Much like the WH is proposing, there will have to be a lot more data collected before I'm fully onboard with this..

 

They forgot to stop subsidizing illness.

Good point. This would burden lenders with high risk borrowers they would not have approved had they known they do not repay their debts. Could this end the same way it did when we approved prime loans to subprime borrowers?

 

Well that's what I'm thinking. If we rig the system to hide debt for...whatever. Frankly I'm not sure what the purpose of this is. Anyway it's likely that people will take on more debt than they can afford to pay because, hey my credit score.

 

The agency said in a statement that including medical debt in credit scores is problematic because “mistakes and inaccuracies in medical billing are common.”
...
In addition to pulling medical bills from credit reports, the proposal would prevent creditors from using medical bills when deciding on loans and stop debt collectors from using credit ratings to pressure people with health care-related debt. The government will hear feedback from small businesses and then issue a notice of a proposed rulemaking at some point next year.
https://www.pbs.org/newshour/politi...emove-medical-debt-from-peoples-credit-scores

...
Looks like it's still in data gathering phase.

 

I thought Obamacare was going to fix this?

 

It helped, but a bunch of red states didn’t expand Medicare.

 

Medicare or Medicaid?

 

Sorry, Medicaid

 

You mean the model based off Romneycare under the idea that Republicans would actually come together in efforts to fix a very broken system? It did what it could — banned denying coverage for people with preexisting conditions, got more people insured.

Democrats should have told the party of no to go **** themselves and rammed through single payer instead of actually hoping they would attempt to do anything for this nation besides sell it out.

 

The RINO Romney? Yes. There are no real Republicans in the state of Massachusetts.

 

Medicaid.

 

Where do they think they get the authority to tell lenders that they are forbidden to know the actual financial condition of the person asking to borrow their money? What happens when one of those borrowers who had such high debt including medical debt that was hidden defaults? Will the government pay off the loan or something or is the lender just SOL?