Michelle – These are great points and questions. As a collection agency, that specializes in medical debt – with the majority coming from the Radiology industry – we are paying close attention to this topic.
The proposed potential changes:
- Beginning July 1, 2022, all paid medical debts will be removed from a consumer's credit report.
- Beginning July 1, 2022, unpaid medical debts will have a 365-day waiting period from the date of service before being able to initially report the debt to the credit bureaus.
- Beginning January 1, 2023, any unpaid medical debt less than $500 will not be included on a consumer's credit report.
Our thoughts on this determination: Credit reporting and medical debt have always had a love-hate relationship.
We have clients who have always credit reported and clients who have never credit reported. There is not an absolute answer in this space. Our industries will need additional guidance before we can determine the next best steps. We suggest all practices know and understand what their collection agency is currently doing in this space - for example, SCS has already built new programing and full system rules to properly manage these proposed changes, should they become law.
With much of Radiology being low revenue, and high volume, this would greatly impact the majority of their accounts and bad debt. It is imperative that the physician associations step in and lobby to have Congress understand the impact these sorts of actions can have on the healthcare industry and their bottom line.
The full and original Press Release is below. Feel free to reach out to me at SCS if you want to hear the details of what we are doing in this space. Happy to talk shop and share!
Link:
https://www.prnewswire.com/news-releases/equifax-experian-and-transunion-support-us-consumers-with-changes-to-medical-collection-debt-reporting-301505822.html" title="https://d2qlgm04.na1.hubspotlinksstarter.com/ctc/ub+113/d2qlgm04/vwhpsk4pkcmpmf50qt4thqcw5d86_w4h4hswn3x6vh95knjzv3zsc37cgjzdw9cdvtx8jzn5lw8s_0mn62nyjhw2xvbjb9hvnxjw7bpwsb2mltvjw1wft-w237wbzw56hhqh1nmnr2w70v3qw7vrp_bw1qxjm68jwkvyw2hvndx3kj9nkw2x8c4v42p0syw7ldkbs92phwpw1xqdsq3xnflbw7qcytk4yhgsrw3n9vk28lhjdmw98bpvq2zcgl-w9bzjj17l04wln2xxpsmlslygw6s3k531kjf44w20pcqd8vm1fgw3k_wnb5ppphpw3sz-lg5xtwkjw6jhy3_32b__lw6yb9q44gknpcw1jbzgc5knmlnw4qlyct7jwgwgw8nnlvs44zxkzw1cjdr72gvnrtw2kbd9-3lktfvw9fdlz63mtdrbw7klkzx4l1rvtw7mfrkh6zgh0dw4thdb42h9lsmw43gvvq8qvbt5w4flczm3-bvdyw4zb_-s2yb31rw6cwnfc59cqbrw7kfrvx58ky2bw6qcbdd2g2gzq3bkb1" href="https://d2qlgm04.na1.hubspotlinksstarter.com/Ctc/UB+113/d2qLgM04/VWHpSK4PKCmpMf50qT4thqcW5d86_w4H4hsWN3X6VH95knJZV3Zsc37CgJzdW9cDvTX8JZn5lW8S_0mN62NYJHW2XvbJb9hVnxjW7bPWsb2mLtvJW1Wft-w237wbZW56hhqh1nmNR2W70v3qW7VRp_BW1qxjM68JwKvyW2HvNDx3kj9NKW2x8c4V42p0sYW7ldKBS92phWpW1xQdSQ3XnflbW7qCytK4YHgSrW3n9vK28LHJdMW98BpVQ2ZcGL-W9bZjj17l04wLN2XXPSMLsLyGW6s3k531kJf44W20PcqD8VM1fgW3k_WnB5PPPhpW3SZ-Lg5xtWkjW6jhy3_32B__lW6YB9q44GKNPCW1jBZGc5KNMLNW4QLyCt7jWgwGW8nnlVs44zXKZW1cJdR72gvnrTW2KbD9-3LktFvW9fDlZ63mtdrbW7KlkZx4L1rvTW7mfRKh6ZgH0DW4THdB42H9LSmW43gvvq8QVBT5W4FLcZm3-bvdYW4ZB_-s2yb31rW6cwNfc59CQbrW7kFrVx58KY2bW6qCBDd2G2gzq3bKb1" rel="noopener noreferrer" target="_blank" tabindex="-1">https://www.prnewswire.com/news-releases/equifax-experian-and-transunion-support-us-consumers-with-changes-to-medical-collection-debt-reporting-301505822.html
------------------------------
Maegan Moore
Director, Marketing & Business Development
Specialized Collections Systems, Inc.
maegan.moore@scscollects.comChair, RBMA Chapter Committee
Past President, Texas RBMA
Past Secretary, Texas RBMA
Past Member, RBMA Marketing Subcommittee
------------------------------
Original Message:
Sent: 05-11-2022 14:41
From: Michelle Juette
Subject: New Credit Bureau Reporting and Impact to Collections
While the No Surprise Billing regulations will further reduce many practices collection accounts, the email I just got from Equifax confirms that patient responsible balances for accounts we ARE contracted for is going to get more interesting as well. Washington state previously moved to require 120 days before we can send an account to collection, and that had some impact, but here's the new additions impacting nationwide collection processes:
• | Paid medical collection debt will no longer be included on consumer credit reports, as of July 1, 2022. |
• | The time period before unpaid medical collection debt will appear on a consumer's report will be increased from six months to one year, also effective July 1, 2022. This change gives consumers more time to work with insurance and/or healthcare providers to address medical collection debt before it appears on credit reports. |
• | Medical debt collection accounts under at least $500 will no longer be included on consumer credit reports. This goes into effect the first half of 2023. |
Any thoughts as to changes in your existing processes or what you may consider to help address these changes? We are hospital-based so not a whole lot of control over what happens on the patient side, but shaking my head over the continual hits to healthcare to say the least.
Thank you for any input you may have,
Michelle
Michelle R. Juette, CPC, RCC
Business Services Manager
Yakima Valley Radiology
(509) 895-0402 (direct, voice/mail)
(509) 248-0733 (secure fax)
mailto:mjuette@yakrad.com
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