According to a recent report made by the Consumer Financial Protection Bureau, 20% of US citizens did not pay their medical bills this year. This means that 42.9 million Americans are in debt.
The recent report suggests that a lot of Americans miss to pay their medical bills because they do not really understand the notices they receive from insurance companies and hospitals, notices about the costs of their treatments. This is actually more serious than it sounds because millions of American people are stuck with unpaid bills, which means they have lower credit scores.
These lower credit scores make it harder for the 42.9 million Americans who are in debt to borrow money for a car or a house.
Richard Cordray, director of the Consumer Financial Protection Bureau said that when people get ill and end up in the hospital, they end up with bills they did not expect and it confuses them. He added that this is one of the reasons why 42.9 million Americans are in debt at the moment from not paying their medical bills.
A person who only has overdue medical debt owes in average $1.766. A person who has unpaid medical bills and other back taxes and unpaid credit card debt, owes about $5.368. Reports reveal that that more than half of the people’s debt on credit reports comes from unpaid medical expenses.
The experts believe that these debts could be easily avoided. They say that half of the 42.9 million Americans who are in debt have no other financial problems. Complaints to the Consumer Financial Protection Bureau show that many of those who are in debt from not paying their medical bills are baffled by this. They are just confused by all the hospital and insurance statements and do not know for what and how much they are supposed to pay. Also, they find it difficult to establish the payment’s deadline and to which organization the payment should go to.
The Consumer Financial Protection Bureau said that because 42.9 million Americans are in debt, it will try to provide regular reports to people and help them investigate and respond to the disputed charges.