Big Changes in Medical Debt Reporting

medical debt collectionThe National Consumer Assistance Plan (NCAP) has been making big waves in the area of credit report accuracy. As a reminder, the initiative, started by the three consumer credit reporting companies – TransUnion, Experian, and Equifax – aims to ensure the most accurate credit reports possible. For more information about the NCAP, check out our previous blog post or visit their website.

One of the plan’s reforms focuses on combating the inaccuracies in credit reports that are caused by medical debt.  In a study by ACA International, called “The Role of Third-Party Debt Collection in the U.S. Economy”, of the debt collected by third party agencies, 38% was medical. With such a large market in medical debt, the changes that the NCAP has instituted will prove to be significant.

The changes in medical debt reporting, taking effect in September of 2017, will help ensure that consumers have accurate credit reports.  At Credit Consulting Services, Inc., we’ve taken steps to comply with these changes.

The most impactful policy change will be that medical debt collection accounts cannot be reported until 180 days after their first delinquency.  This will help cut out errors that are caused by insurance payment delays.  John Ulzheimer, from, was quoted in the Chicago Tribune explaining that, “You want to give the insurance-claims process time to work and get these doctors and service providers paid, and that process can take months in some cases.  You don’t want to penalize the consumer because of the insurance process deficiencies, which is essentially what happens today.”  This illuminates the previous problem that many consumers were facing: even with insurance, their credit scores could be impacted due to the slow process of insurance payments.

At Credit Consulting Services, we are always up to date with the latest methods and requirements for collecting medical and healthcare overdue accounts. As always, we would be happy to help you further understand the impact of these new reforms and to assist you in collecting any overdue medical accounts you may have.

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