THE GROWING BURDEN OF MEDICAL DEBT ON CONSUMERS

You have overcome a major medical issue; you have undergone surgery or spent a few days in a hospital. Now, you are looking forward to the rest of your life. However, the medical bill is looming large, overpowering your ability to pay. Even more troubling, you are still sick and cannot cover medical expenses. Based on a report by the Consumer Financial Protection Bureau, you are not alone. Americans owe billions to medical providers. The Bureau estimates that anywhere between 18% to 35 percent of Americans suffer from medical debt, which is higher for Black and Hispanic individuals, young adults, and those with low incomes of all ethnicities and races most likely to bear the burden.

Medical Debt Most Common in Collection

Based on a recent federal government report, American credit reports show $88 billion in medical debt as of last June.

According to the Consumer Financial Protection Bureau report, medical debt is the most common type of debt pursued by debt collectors, comprising 58% of all third-party debt collection in 2021. That dwarfs the next most common form of debt pursued by collection agencies, telecommunications debt, at 15%.

The report states that two-thirds of medical debt stems from the need for medical treatment that is only temporary or the result of an urgent need and when patients do not have the time or have the opportunity to search for cheaper alternatives. If you are not insured or your insurance’s network does not cover the service, it may cost you more. Even if you are in-network, the prices vary significantly across different departments or facilities of the same institution.

Hospital Bills & Medical Debt Collections

Suppose a debt collector is calling you to collect the debt you owe, and you have concerns regarding the amount of debt they claim or the business that is contacting you. In that case, you need to talk to an Atlanta consumer lawyer or a Georgia consumer advocate.

Diwan Law is keenly aware of the challenges people face in paying medical bills. We hear a lot of distressing and emotional accounts from individuals who explain the impact of medical debt on their families, work, their ability to access credit, and their lives.

Whatever the size or nature of the medical debt you owe, we recommend that you hire an experienced debt defense attorney to protect you and your loved ones.

As with credit card debt, medical debts are often sold to third-party buyers who typically have difficulty proving the debt was legally assigned to them.

Legal actions by third-party debt collectors to recover medical and healthcare bills could provide the possibility of affirmative defenses not offered in lawsuits filed by the original creditors.

Any defense against an action will improve your legal standing and could result in the dismissal of your case or assist in negotiating an acceptable settlement.

A skilled Consumer Debt Defense Attorney will begin by challenging the validity of every medical bill or report utilized against you.

Contact Diwan Law now, 404-635-6883, for your free consultation.

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