Article Summary –
VP Kamala Harris announced actions to combat illegal medical debt practices, affecting 3 million in NC. The Consumer Financial Protection Bureau issued advisories to ensure debt validity and protect consumers from inflated charges. NC hospitals join a debt relief program, potentially forgiving $4 billion.
Efforts to Halt Illegal Medical Debt Collection Could Affect Three Million in North Carolina
Vice President Kamala Harris announced new measures on Tuesday to curb medical debt and illegal collection practices, potentially aiding North Carolinians facing debt issues.
These actions aim to stop debt collectors from using illegal tactics, focusing on evidence collection and cracking down on certain collectors.
The Consumer Financial Protection Bureau (CFPB) issued an advisory clarifying that collectors must verify debts as accurate before proceeding.
“These illegal practices include double-billing for insured services and pursuing exaggerated charges,” the CFPB press release stated.
CFPB Director Rohit Chopra emphasized the need to stop unfair collection methods, citing medical billing errors like inflated charges.
The Bureau also provided a consumer advisory on addressing unfair billing and collection practices.
Harris announced actions to reduce medical debt burdens, focusing on consumer protection against predatory practices.
Stories from North Carolinians, like Darcy Guill, highlight the state’s medical debt crisis, emphasizing the need for relief programs.
Guill, who now assists others with Medicaid access, illustrates the widespread issue as many residents carry medical debt.
In North Carolina, recent hospital mergers have increased competition concerns, driving up medical debt, according to Harold Miller.
North Carolina laws allow hospitals to pursue medical debt aggressively, with lawsuits and interest-laden judgments.
Amid growing pressure, Atrium Health canceled 11,500 liens against patients, a significant move toward debt relief.
Nationally, medical debt continues to be a major financial burden, with Harris and Biden addressing potential solutions, including removing medical bills from credit reports.
In North Carolina, Gov. Roy Cooper announced nearly 100 hospitals will eliminate $4 billion in medical debt, aided by the Medical Debt Relief Incentive Program.
The program will forgive debts for low-income patients and prevent the sale of their medical debts to collection agencies.
Experts suggest this initiative could be a national model if expanded by Harris.
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