A number of different agencies within the federal government — including the Consumer Financial Protection Bureau — announced on Friday that they are taking steps to try and reduce the amount of medical debt incurred by patients, focusing on the areas of short-term health plans, surprise medical bills, and medical credit cards.
The CFPB, along with the Treasury Department and the Department of Health and Human Services has launched an inquiry into “high-cost specialty financial products,” such as credit cards aimed at helping patients cover their medical expenses, because they may be “pushed on patients as a way to pay for routine medical care” and because they “drive up health care costs and medical debt.”
The CFPB is holding a hearing tomorrow at its headquarters on medical billing and collections. People can attend the event in person or can watch it by registering here.
“You go to the emergency room with a broken leg and may be offered a credit card before you’re even told you can apply for financial assistance,” said Diane Thompson, senior advisor to the Director of the U.S. Consumer Financial Protection Bureau, in a published report.
Interested parties will have 60 days to submit comments on a range of topics, including the costs associated with medical payment products, how prevalent and popular the products are, the incentives that healthcare facilities may be offered to promote the use of such products, and whether patients fully understand the risks and consequences of using these products.
“This inquiry builds on the Department’s work to protect patients from unfair billing practices, lower costs, and increase transparency in our health care system,” said HHS Secretary Xavier Becerra. “Hearing directly from patients about their experiences will help shape policies that can prevent families from incurring medical debt.”
The CFPB said it is seeking information on the following topics:
- The specialty medical payment product market.
- Patient experiences and downstream consequences.
- Billing and financial assistance issues.
- Health care provider incentives.
The announcement from the federal government follows an inquiry that a number of Senate Democrats opened earlier this year into medical credit cards and the “potential harm they may inflict on patients.”
Also on Friday, The Centers for Medicare and Medicaid Services announced a propose rule that would limit short-term health plans to three months, from three years currently. Short-term plans are different than traditional health insurance and may leave individuals with lower coverage and higher medical bills.
The federal government also released guidance aimed at closing loopholes with respect to surprise medical bills, which occur when a patient is treated by an out-of-network physician or facility. Currently, some health plans can contract with facilities and claim they are not technically in-network, which is prohibited, according to the guidance that was issued.
