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Introduction
Medical expenses have always been a burden for most Americans, with millions of people struggling to pay their medical bills. Approximately, 62% of all bankruptcies in the United States are caused by medical debt. Moreover, over 43 million Americans have medical debt in collections. With the increasing cost of healthcare, millions of Americans face financial problems as they often cannot afford to pay their medical bills. In light of this, the US government passed the Medical Debt Relief Act in 2015 to provide relief to those struggling with medical debt. This article will delve into the details of this act, its provisions, and the benefits it offers to the people.
What is the Medical Debt Relief Act?
The Medical Debt Relief Act is a legislation passed by the US Congress in 2015 to help Americans struggling with medical debt. The primary objective of the act is to protect individuals from being penalized if they are unable to pay their medical debts. The act prohibits credit bureaus from providing negative credit information about medical debt to consumers’ credit reports. The law helps to prevent damage to consumers’ credit scores, which can take years to recover.
The act also helps to provide protection to military personnel and their families who may have incurred medical debts during their service. The Medical Debt Relief Act also helps to curb the practice of debt collectors inflating medical bills and harassing patients into paying their medical debts.
The Medical Debt Relief Act Provisions
The Medical Debt Relief Act has several provisions aimed at providing relief to Americans struggling with medical debt. Here are some of the important provisions of the act:
Prohibition of Negative Credit Reporting on Medical Debt
One of the key provisions of the Medical Debt Relief Act is the prohibition of negative credit reporting on medical debt. This provision states that credit bureaus cannot report medical debt on credit reports until 180 days after the account is reported as delinquent. This provision helps to ensure that people are not penalized for unpaid medical bills and their credit scores are not damaged.
Protection for Military Personnel
The Medical Debt Relief Act also provides protection to military personnel and their families who may have incurred medical debts during their service. Under the act, medical debts incurred by military personnel due to injuries sustained during their service are not reported to credit bureaus. Additionally, this provision helps to prevent military personnel from being discriminated against due to their medical debts.
Curb Inflation of Medical Bills by Debt Collectors
Another provision of the Medical Debt Relief Act is designed to curb the practice of debt collectors inflating medical bills. In the past, debt collectors often added fees, interests, and charges to medical bills, making it difficult for people to pay off their debts. This provision helps to prevent this practice by limiting the amount that debt collectors can add to the original debt.
Prohibition of Harassing Collections
The Medical Debt Relief Act also prohibits debt collectors from harassing patients to pay their medical debts. Debt collectors cannot call patients excessively, threaten them with legal action, or engage in other forms of harassment to collect debts.
Benefits of the Medical Debt Relief Act
The Medical Debt Relief Act has several benefits for Americans struggling with medical debt. Here are some of the key benefits of the act:
Protection of Credit Scores
The Medical Debt Relief Act helps to protect the credit scores of people struggling with medical debt. The act prevents medical debt from being reported to credit bureaus until 180 days after the account is delinquent, providing people with time to manage their debts and avoid penalization.
Protection of Military Personnel
The provision of the act protecting military personnel and their families from medical debt provides much-needed relief to these groups. It ensures that military personnel are not discriminated against due to debts incurred during their service and allows them to focus on their health and wellbeing.
Prevention of Debt Inflation
The provision of the act designed to curb debt inflation goes a long way in reducing the overall burden of medical debt. By limiting the amount that debt collectors can add to the original medical debt, the act helps to prevent people from accumulating excessive debts.
FAQs
What is medical debt?
Medical debt is the amount of money that a patient owes for medical services received. The debt can result from payments due to healthcare providers, hospitals, or insurance providers that were not covered by insurance.
What is the Medical Debt Relief Act?
The Medical Debt Relief Act is a legislation passed by the US Congress in 2015 to help Americans struggling with medical debt. The act aims to protect individuals from being penalized for unpaid medical bills and prevent negative credit reporting by credit bureaus.
What are the benefits of the Medical Debt Relief Act?
The Medical Debt Relief Act helps to protect the credit scores of people struggling with medical debt, provides relief to military personnel and their families, prevents debt inflation, and prohibits harassing collections.
Conclusion
The Medical Debt Relief Act provides much-needed relief to Americans struggling with the high cost of medical care. The act protects credit scores, limits the amount that debt collectors can add to medical bills, and prohibits harassing collections. With millions of Americans facing financial problems due to medical debt, the Medical Debt Relief Act is a vital tool in ensuring that people are not penalized for receiving medical care.
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Article Summary:
The Medical Debt Relief Act of 2015 was passed by the US Congress to help Americans struggling with medical debt. It prohibits credit bureaus from reporting negative credit information about medical debt to consumers’ credit reports, prevents damage to credit scores, and provides protection to military personnel and their families who may have incurred medical debts during their service. The Act also curbs the practice of debt collectors inflating medical bills and harassing patients. The Act has several provisions aimed at providing relief to Americans struggling with medical debt and has several benefits, including the protection of credit scores and prevention of debt inflation.
