President Obama’s Affordable Care Act (ACA) paved the way for action to reduce the financial burden of medical debt and ensure no U.S. citizen would be refused health insurance due to preexisting conditions.
Unfortunately, the ACA was not enough to altogether remove the chance you could be financially ruined by medical debt. So many Americans are struggling to make ends meet because of mounting medical bills (even when utilizing medical debt consolidation options), while others risk their health by avoiding getting medical care at all just because of the cost.
Now President Biden’s administration has taken steps to help millions of Americans reduce their medical debts with new legislation, but is it too little too late? And is there anything more that can be done?
Luckily, new changes have already been enacted by the federal government, state governments, and even private companies to reduce the potential for accruing medical debt and its consequences.
The White House directed federal agencies to:
In addition, Congress enacted a cap on the price of insulin for Medicare recipients, causing pharmaceutical manufacturer Eli Lilly to expand the cap for all insulin users, regardless of Medicare eligibility.
State governments in California, Colorado, Maryland, and New York have implemented new laws that expand consumer protections while also requiring hospitals operating in their states to increase financial aid options for patients.
Finally, all three credit reporting bureaus – Equifax, Experian, and TransUnion – have stopped including unpaid medical debts under $500.
While some start is better than none, there’s still more work to be done to ensure Americans receive the medical care they deserve without worrying about how it could affect their finances.
While some medical debt will be stricken from credit reports, the limit of $500 seems to be unreasonably low and doesn’t take into consideration that medical bills could be “hidden” from the rule as many healthcare-related expenses are simply added to credit card balances or money borrowed from relatives.
Consumer and patient advocates are also putting pressure on the federal and state governments to enact further protections for patients, including:
There is also the option for the federal government to create a nationwide single-payer healthcare option, but this seems to be a low priority for both Congress and the White House.
Consumer advocates are leading the way for better healthcare options that don’t involve crippling medical debt, but there’s still more work to be done. With the help of our elected officials, we can ensure that everyone has access to quality, affordable healthcare without worrying about the cost.