That’s because we Americans view paying for our healthcare not as a financial obligation like any other purchase, but rather as using money we should be able to spend on more pleasurable things.
Paying a medical bill is far down the list of spending priorities for many people. Somebody else, some insurance, some government agency should pay those bills.
Is being required to pay a medical bill unfair anymore than another type of bill – perhaps a large car repair bill? Not exactly logical is it?
Consumer Financial Protection Bureau (CFPB) on Tuesday proposed a rule that would remove medical debt from credit reports. Its goal? Help people with low credit scores qualify for mortgages and loans they can’t afford. “I just don’t want to see the credit reporting system be weaponized,” director Rohit Chopra said. But who’s really weaponizing credit reporting?
Mr. Chopra says noting the nonpayment of medical bills is unfair given the vagaries of illness. But this is a reason to carry health insurance. Very few Americans with insurance rack up enormous medical debt. Affordable Care Act plans have deductibles and co-pays, but the ACA’s subsidies can offset premiums. Patients often prioritize other loan payments so cars aren’t repossessed or homes foreclosed. A credit-report blemish is the only tool healthcare providers have to encourage payment…
Medical debt affected the credit scores of roughly 15 million Americans as of last June, averaging about $3,100—far from a terrible burden. Most also carried other forms of debt. Progressives say medical expenses can drive Americans into bankruptcy, and this happens. But providers are usually willing to reduce or extend payments for those who can’t afford care.
Source: Wall Street Journal
Removing medical debt from credit scores means potential creditors will not see the full picture of debt obligations which may mean a distorted picture of what a borrower can afford to buy. Illogical! It brings back memories of subprime mortgage lending in the illogical quest to increase home ownership.
Vice President Kamala Harris said the move would improve “the financial health and well-being of millions of Americans.” Source: NYT
No it won’t!
QUINNSCOMMENTARY 
So, if I am a lender, I am going to raise rates for everyone in anticipation of new expenses for additional defaults.
Further, my application will ask individuals to disclose medical debts.
I will capture details from everyone’s record prior to the new agency action to remove those expenses.
Finally, and importantly, with the elimination of Chevron Deference, this seems to be something that would be easily challenged in court – as there is no legislation that justifies differentiating medical debt from any other debt.
Get ready for the sh*t to hit the fan.
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It’s an election year. Goodies must be distributed.
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well, the CFPB is the brainchild of Sen. Warren–not funded by Congress much like he Federal Reserve–thus this is just one of the more “unusual” musings or rulings from these folks.
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