Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V)

The document argues that medical debt is a systemic issue in the United States, disproportionately affecting vulnerable populations and causing severe financial and physical harm. It specifically highlights the role of private equity in increasing healthcare costs and employing aggressive debt collection strategies through Revenue Cycle Management (RCM) companies. The authors support the CFPB's proposed rule to stop the reporting of medical debt to credit agencies, noting that such data is an unreliable indicator of financial responsibility and is often inaccurate.

• Medical debt is widespread in the United States, with an estimated $220 billion owed in 2021. It disproportionately impacts individuals with disabilities, Black people, low- and middle-income adults, and those without health insurance.
• Medical debt has severe consequences for physical and mental health, including increased all-cause mortality and lost years of life. It also creates barriers to essential credit for mortgages, cars, and small businesses.
• Private equity firms have contributed to the medical debt crisis by acquiring hospitals and physician practices, which is associated with increased healthcare spending and higher charges for patients.
• Private equity-owned medical credit card companies, such as AccessOne, have burdened patients with high interest rates. In one instance at UNC Health, the percentage of patients in the highest-interest loan plan rose from 9% to 46% after a private equity-owned company took over billing.
• The growth of Revenue Cycle Management (RCM) companies, many backed by private equity, has led to more aggressive debt collection. By July 2024, private equity firms backed 104 RCM companies.
• Medical debt data on consumer credit reports is frequently inaccurate. The CFPB estimated in 2022 that $88 billion in medical bills were reflected on credit records, and many private equity-owned collectors have faced complaints for attempting to collect debts not owed.
• A case study of Providence Health revealed that private equity-owned collectors Optimum Outcomes and Harris & Harris unlawfully collected medical debts without providing mandatory disclosures about charity care, resulting in approximately $1.8 million in penalties.

APA

Private Equity Stakeholder Project (2024). Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V). https://pestakeholder.org/wp-content/uploads/2024/08/CFPB-Regulation-V_PESP-CEPR_8.12.24.pdf

Chicago

Private Equity Stakeholder Project. Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V). 2024. https://pestakeholder.org/wp-content/uploads/2024/08/CFPB-Regulation-V_PESP-CEPR_8.12.24.pdf.

Wikipedia

{{cite press release |author=Private Equity Stakeholder Project |title=Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V) |date=12 August 2024 |url=https://pestakeholder.org/wp-content/uploads/2024/08/CFPB-Regulation-V_PESP-CEPR_8.12.24.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{privateequitystakeholderproject2024prohibition, author = {{Private Equity Stakeholder Project}}, title = {{Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V)}}, publisher = {Private Equity Stakeholder Project}, year = {2024}, month = aug, url = {https://pestakeholder.org/wp-content/uploads/2024/08/CFPB-Regulation-V_PESP-CEPR_8.12.24.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }