3 ms·
It's probably impossible to know the full extent of this, but some percentage of hospital debt comes from people that can fully afford their healthcare but are
by Kon-Peki 3y ago
It's probably impossible to know the full extent of this, but some percentage of hospital debt comes from people that can fully afford their healthcare but are using the payment plans as no-interest loans while their money is invested elsewhere. The HSA accounts you get with the high-deductible plans allow you to park the money in self-directed IRA accounts for your entire life. In fact, tax law encourages you to do this.
- zepton 3y agoI don't think amounts that are on a payment plan would qualify as "bad debt" though - if someone is paying as agreed on a payment plan the debt isn't uncollectible.
- Kon-Peki 3y agoYes, very good point. However... The linked report states: > And as sudden operational cost pressures (including nursing shortages and higher wages) frustrate hospital financial leaders, an inability to collect all expected revenue further challenges razor-thin operating margins. > This increase creates new challenges for providers to collect higher balances that are more difficult for patients to pay either prior to services or during the typical 120-day collection window after the insurance balance has been resolved. I think they are being intentionally vague here. Are they saying they're having trouble collecting the money within the 120-day window (so their quarterly reports aren't screwed), or ever? I feel like they want you to believe that it is the latter, when in fact it is the former.
- marcus0x62 3y agoI’d like to know the full extent of this. I’d eat my shoe if it was more than a tenth of a percent of outstanding healthcare debt.