Alert
CFPB’s Final Rule Eliminating Medical Debt Impacts Health Care Providers
The Consumer Financial Protection Bureau (CFPB) recently announced a final rule aimed at eliminating medical debt from Americans’ credit reports and preventing lenders from using medical information in their lending decisions. This rule will remove approximately $49 billion in unpaid medical bills from the credit reports of approximately 15 million Americans.
According to the Kaiser Family Foundation, the average health care insurance deductible is currently approximately $1,800, having doubled since 2010. With the publicity around the final rule, patients may feel less responsibility to pay their portion of services, even when they have the ability to pay. This shortfall in patient collections may impact providers’ ability to serve local communities.
Finalized on January 7, 2025, the rule is scheduled to go into effect March 2025.
What Actions Should Providers Take?
Health care providers should take steps in these areas.
Price Transparency
Proactively offer a way for patients to understand the costs of services so they can select a facility and anticipate the costs.
Online Patient Portals
Like retail shopping, patients prefer a fast and convenient way to review their services, explore payment plans, and complete transactions with just a click. Create an accessible, online platform allowing patients to easily review their explanation of benefits, payment options, and services which encourages them to make payments.
Train Staff and Set Expectations
Revamp scripts, tools, and education for staff on potential patient funding sources, Health Savings Accounts (HSA), Flexible Spending Accounts (FSA), Medicaid eligibility, and available payment plans to facilitate service payments.
We’re Here to Help
To learn more about how you can respond effectively to the Medical Debt Final Rule, please contact your Moss Adams professional.