
Last year, a law passed regarding the reporting of medical debt on credit reports.
Many people rejoiced that the big ugly beast of medical debt ruining credit scores was tamed.
Was it really tamed?
While much publicity surrounded the new law and its good intentions at the time, does it fix medical debt in collections?
Let’s take a look…
The new law (effective 7/1/23) only states that medical debt under $500 cannot be placed on a credit report.
That’s new debt since July 1st.
What about bills of $501 and up?
Good question!
Yes, they can still be reported.
What about bills that are purposefully combined to exceed $500?
Yes, still reported.
What about bills prior to 7/1/23?
Yes, still reported.
What about lawsuits, judgements, and liens?
Yes, they can still happen and can be reported.
Any bill of any size can go to collections, court and further.
Back to the original question: Is the big ugly beast of medical debt tamed?
Nope. Not quite yet.
The new law was an appeasement, like a band-aid on a gushing wound.
I guess I’m still in business then.
If someone is stressed out by high medical bills or medical debt, please ask them to look at getting help.
Taming the big ugly medical debt beast sometimes requires assistance.
The Medical Debt Reduction Program is done-for-you.
We know how to reduce or eliminate medical debt.
We do the work for you.
Check out the program at Medical Debt Reduction Program
We do this because medical debt is the #1 cause of bankruptcy in the US.
We do this because not everyone is cut out to be their own advocate.
We do this because, without bragging, we’re good at it.
See if it’s a good fit for the bills trying to bankrupt you.
And, in the end, only pay what you really owe.
©2023 Ronda Cobb, the Money Coach
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