Owe Major Medical Debt?

Owe Major Medical Debt?

Via the Affordable Care Act, Congress has now mandated that the IRS direct tax-exempt hospitals to ease up on medical debt collection. Currently, over 57% of hospitals are tax-exempt and will be required to observe the new regulations if passed.The proposed rules would require that such hospitals inform their patients of charity care policies or reduced fee programs, a practice that has thus far not been obligated. Furthermore, these hospitals are not allowed to use “extraordinary collection actions” on low-income patients receiving financial assistance.Under the proposed guidelines, the following practices would be prohibited:

1.  Contacting credit reporting agencies to report on the patient;2.  Placing liens or foreclosing on a patient’s property;3.  Seizing bank accounts or garnishing wages;4.  Filing civil suits or causing arrests or detainment.

These benefits come at a price, however, as the health reform goes into full effect by 2014, requiring all Americans to be insured, whether they have private insurance or opt into government provided health insurance, with limited exceptions.

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