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Non-American here: What is the incentive for anyone in the US to pay off medical debt then? Also, I’ve read that medical debt is the number one cause of persona

Non-American here: What is the incentive for anyone in the US to pay off medical debt then? Also, I’ve read that medical debt is the number one cause of personal bankruptcy in the US; how does that work?

JumpCrisscross 2y ago
> What is the incentive for anyone in the US to pay off medical debt then? The non-reportability is a recent change. Also, if the provider sues, whether it’s on your credit report is irrelevant.
- DonnyV 2y ago
  The non-reporting is only for cleared medical debt, which means it was paid off. Also it has to be under $500. Which we all know in the US. There is no medical bill under $500. This thing that Biden Admin did is useless for people that have medical debt. https://www.cnbc.com/select/medical-debt-credit-report/ https://www.cnbc.com/select/medical-debt-credit-report/
  - JumpCrisscross 2y ago
    > is useless for people that have medical debt Strongly disagree. Being able to take your time to pay a debt when in a cash crunch without worrying about the long-term impacts on your credit is material.
    - DonnyV 2y ago
      This doesn't solve the actual problem though. These private insurance companies need to GO!! #MedicareForAll
rohansingh 2y ago
First off, it's not strictly true that medical debt won't show up on a consumer credit report. Medical debts that are in collections will eventually show up, if they are large enough. Secondly, it's still a legal debt. That means the billing department will employ escalating collection tactics for large debts where they believe the debtor has sufficient assets.
toast0 2y ago
Look, everybody is all excited about single-payer healthcare, but this is even better; zero-payer healthcare! There is a chance of follow up, and some healthcare providers do. You can be taken to court and forced to pay or declare bankruptcy if you can't. While the US does legally require some medical care regardless of ability to pay, that's mostly for life sustaining care; healthcare providers to which you owe a large debt may decline to provide healthcare when not legally obligated. That can be a big deal or not depending on your available providers and their policies.

JumpCrisscross 2y ago

> What is the incentive for anyone in the US to pay off medical debt then? The non-reportability is a recent change. Also, if the provider sues, whether it’s on your credit report is irrelevant.

DonnyV 2y ago
The non-reporting is only for cleared medical debt, which means it was paid off. Also it has to be under $500. Which we all know in the US. There is no medical bill under $500. This thing that Biden Admin did is useless for people that have medical debt. https://www.cnbc.com/select/medical-debt-credit-report/ https://www.cnbc.com/select/medical-debt-credit-report/
- JumpCrisscross 2y ago
  > is useless for people that have medical debt Strongly disagree. Being able to take your time to pay a debt when in a cash crunch without worrying about the long-term impacts on your credit is material.
  - DonnyV 2y ago
    This doesn't solve the actual problem though. These private insurance companies need to GO!! #MedicareForAll

rohansingh 2y ago

First off, it's not strictly true that medical debt won't show up on a consumer credit report. Medical debts that are in collections will eventually show up, if they are large enough. Secondly, it's still a legal debt. That means the billing department will employ escalating collection tactics for large debts where they believe the debtor has sufficient assets.

toast0 2y ago

Look, everybody is all excited about single-payer healthcare, but this is even better; zero-payer healthcare! There is a chance of follow up, and some healthcare providers do. You can be taken to court and forced to pay or declare bankruptcy if you can't. While the US does legally require some medical care regardless of ability to pay, that's mostly for life sustaining care; healthcare providers to which you owe a large debt may decline to provide healthcare when not legally obligated. That can be a big deal or not depending on your available providers and their policies.