Capio, the nation’s leading purchaser of non-performing healthcare accounts, has submitted a detailed comment letter in response to the Consumer Financial Protection Bureau’s (CFPB) proposed rule to remove medical debt from consumer credit reports.
At Capio, our mission is rooted in helping individuals burdened with medical debt achieve financial wellness. Our approach is both compassionate and practical, designed to ensure patients can manage their financial obligations without compromising their health. In line with this ethos, Capio’s submitted comment outlines our concerns regarding the potential unintended consequences of the proposed rule and offers alternative solutions that prioritize patient financial wellness while supporting healthcare providers.
While the CFPB’s proposed rulemaking is well-intended, it requires additional consideration to avoid long-term negative impacts. Some of the potential unintended consequences of the proposed rule include:
- Reduced Incentives for Payment: The removal of medical debt from credit reports may diminish patients’ motivation to pay their medical bills, leading to increased financial strain on healthcare providers.
- Increased Healthcare Costs: Financial pressure on providers could result in higher costs for healthcare services, particularly impacting vulnerable populations who already face barriers to care.
- Potential Rise in Litigation: With limited options for debt recovery, healthcare providers may turn to more aggressive collection methods, including litigation, which could impose additional financial and emotional burdens on patients.
- Impact on Credit Access: Without medical debt information, lenders may find it challenging to assess creditworthiness, leading to higher costs of credit or reduced access to credit for consumers.
As such, our comment submission encourages the CFPB to consider the following alternative solutions:
- Positive Credit Reporting: Implement practices that reward patients for on-time payments, helping them build credit while maintaining accountability for medical debt.
- Adoption of a Nationwide Patient Bill of Rights: Establish industry standards that protect patients’ financial dignity, ensuring they only pay what they can reasonably afford without facing additional fees, interest, or litigation.
- Support for Financial Wellness Tools: Promote the use of tools like BuoyFi, Capio’s financial platform that helps patients set up affordable payment plans by using verified income data.
Capio’s proposed solutions are designed to protect consumers while also helping them maintain and improve their credit standing. These alternatives offer a balanced approach that benefit not only those who face challenges in paying their full medical bills but also those who consistently meet their financial obligations by providing options for affordable payment terms.
We believe these measures will create a more equitable and sustainable environment for all stakeholders in the healthcare receivables sector.
Capio looks forward to continuing working with the CFPB and other stakeholders to refine these solutions and advocate for a path forward that prioritizes patient financial wellness without sacrificing the viability of healthcare providers.
Read our full submitted comment here.