Could we see an end to medical bill harassment?

Outrageous medical bills may have been the answer. Just two years ago, the problem spiraled out of control, leaving consumers with only a handful of options, but on Wednesday the Consumer Financial Protection Bureau (CFPB) issued guidelines to prevent families from being targeted by illegal and unfair medical debt collection tactics. .

Debt collectors, including third-party revenue cycle management companies, were violating federal law when they collected inaccurate or legally invalid medical debts, according to the advisory opinion.

These illegal practices included double-dipping to get paid for services already covered by insurance, forcing consumers to pay false or exaggerated fees, misrepresenting consumers’ rights to dispute bills, and collecting debt. debts without documentation proving that the amount owed is actually owed.

If the agency can hold its own, consumers will be protected from anyone who tries to bully them into inflating health care costs.

“Medical debt in this country is out of control, something unheard of in any comparably wealthy country,” Lisa Gilbert, co-president of Public Citizen, told ConsumerAffairs in an email.

“To bring peace of mind to many American patients, more must be done. There is far too much greed in our failing health care system that continues to hinder patient access to care. We must end the profit motive in health care and finally ensure that every American can receive care when they need it without risking financial ruin.

It was also a bigger problem than you might think. Nearly 100 million Americans owe more than $220 billion in medical debt, and not knowing who to talk to or what to do, they often freeze, do nothing, and leave an opening for collection notices for debts that they must not overflow their mailboxes.

The CFPB says many of these notices were already paid for by the consumer or insurance, or should have been covered by insurance, government programs, or hospital financial assistance.

Hospitals did (and still do) use other companies to do their billing, but this also did not prove to be a benefit to the consumer, as these companies could make errors on their invoices or use means unfair to collect money.

The new mantra

This advisory opinion describes how these companies violate federal law when they collect or attempt to collect inaccurate, unsubstantiated, or invalid medical bills. According to the guidelines, illegal practices include:

• Double billing: Businesses cannot attempt to collect medical bills that have already been paid by the consumer, insurance, or a government program such as Medicare or Medicaid.

• Exceeding legal limits: Businesses should not attempt to collect amounts that exceed federal or state caps, such as those set by the federal No Surprises Act or state “reasonable” fee laws.

• Falsified or falsified charges: Debt collectors should not collect on bills that include “upcoded” or exaggerated services, or charges for services that the consumer did not receive.

• Collection of unjustified medical bills: Debt collectors should not attempt to collect medical debts unless there is substantiation, which may include documentation verifying payments or eligibility for financial assistance.

• Distorting Consumer Rights to Dispute Bills: Businesses should not lead consumers to believe that the amount collected has been paid in full, when the payment obligation may be uncertain. Misrepresenting the amount can push consumers into paying disputed or negotiable debts.

If this happens to you, the CFPB can help. Not only does it provide practical information on processing medical bill collection notices, but it also takes calls from any consumer wishing to file a complaint regarding this or any other financial product or service. To do this, visit the CFPB website or call (855) 411-CFPB (2372).