WASHINGTON, December 12 (Sputnik) — Unpaid medical bills are one of the highest forms of collections tradelines in the United States and affect nearly 20 percent of US consumers with credit records – almost 43 million people, said a government report.
Out of the 220 million consumers with credit reports, nearly 20 percent of consumers had collections tradelines originating from medical and healthcare, while the rest were non-medical collections tradelines, the report added.
The report argues that the process of medical billing and third-party reimbursement is so complex that it confuses many patients who do not know if they are responsible for paying the bill, or how much it will cost.
“That complexity could lead some consumers to be unaware of when, to whom, or for what amount they owe a medical bill or even whether payment was the responsibility of the consumer rather than an insurance company,” the report said.
According to the report, the majority of those consumers with medical debt in collections, do not appear to be in any financial distress and are consumers who typically “pay their other financial obligations on time.”
Yet the CFPB says that medical debt collections tradelines continue to affect the credit reports of about one-fifth of all American consumers in the credit-reporting system.
