Why Exposing Evils Of Medical Debt Doesn’t Fix The Problem
Connecticut Gov. Ned Lamont proposed on February 2 to purchase and forgive roughly $2 billion in medical debt owed by state residents. Along with similar proposals in other jurisdictions, the plan offers desperately needed relief from stress and fear to thousands of people who are struggling to pay their current outstanding medical bills. Unfortunately, these programs will do nothing to prevent millions more Americans from falling into the country’s healthcare financial meat grinder.
Meanwhile, three major credit reporting agencies have decided to expunge paid-off medical debts and outstanding debt less than $500 from credit reports, and provide people a year’s grace period before adding new medical debt to credit reports.