medical debt

Courtesy of Dr. Marty Makary

The United States spends more than $3 trillion on health care every year. That comes out to about double the spending per person than other wealthy nations—yet with worse health outcomes in comparison.


For Nebraska’s Poor, Get Sick and Get Sued

May 1, 2016
METT via Youtube

  Two years ago, the president of Credit Management Services, a collection agency in Grand Island, Nebraska, presented a struggling local family with the keys to a used 2007 Mercury Grand Marquis. To commemorate the donation, the company held a ceremony that concluded outside its offices, where the couple and their two young girls could try out their new car.

The family's story was dire: their eight-year-old daughter's failing kidney had led to multiple surgeries and a deluge of medical bills, according to an article in the local newspaper.

But CMS played another role in the family's life, one the article didn't mention. The company had previously sued the couple eight times over unpaid medical bills and garnished both of their wages. As recently as two weeks earlier, CMS had seized $156, a quarter of the girl's father's paycheck.

Too many consumers have learned the hard way that their credit rating can be tarnished by medical bills they may not owe or when disputes delay insurer payment. That should change under a new policy agreed to this week by the three major credit reporting agencies.