The Biden Administration has released their plan of action to help lessen the medical debt burden on Americans. In the agenda released on April 11, 2022, they cite four areas the reforms will be focusing on:
- Hold medical providers and debt collectors accountable for harmful practices;
- Reduce the role that medical debt plays in determining whether Americans can access credit – which will open up new opportunities for people with medical debt to buy a home or get a small business loan;
- Help over half a million of low-income American veterans get their medical debt forgiven; and,
- Inform consumers of their rights.
The Department of Health and Human Services is evaluating overall billing practices by requesting data from more than 2,000 providers on “medical bill collection practices, lawsuits against patients, financial assistance, financial product offerings, and 3rd party contracting or debt buying practices” per the White House release.
Some of the ways that providers can help support patients make informed decisions is by offering them all relevant information on topics. They include: estimates on patient responsibility, financial assistance eligibility, payment plan options, and transparent tools for payments. Data finds that a majority of Americans find the healthcare system confusing, especially when pertaining to insurance and billing, so clear financial advice helps.
Additionally, it’s beneficial to be aware of how the administration will be providing guidance to credit agencies pertaining to medical debt. Departments such as the US Department of Agriculture, the Department of Veteran Affairs, and the Small Business Administration have already announced their own plans to rewrite guidelines to lessen the negative impact of medical debt on a person’s ability pertaining to loans.
Outsource Receivables Inc. keeps up to date on major industry changes like this, which helps our clients stay ahead of the curve. Contact us if you have questions about the benefits of outsourcing your medical billing.