In the United States, medical debt is one of the most common types of debt. A new study suggests that forgiving medical debt after it has been sent to collections might not be as helpful as was once thought.
Researchers who worked with RIP Medical Debt, a non-profit that helps buy and forgive the medical debt, said what happened when people’s bills were bought and canceled was “disappointing.” When you look at people’s credit scores and their desire to go to the doctor, it has been shown to have few effects.
A report from the National Bureau of Economic Research was written by Raymond Kluender. He said, “Our hope was that this would be a cost-effective intervention.”
“We find no real benefits on people’s household finances, mental health, or use of healthcare in our study,” he said.
He then said that they still believe hospital debt is a big problem, but that something might need to be done sooner. Kluender said that making it easier for people to get health care might help more than just waiving the bills that have already been paid.
The president and CEO of RIP Medical Debt, Allison Sesso, said, “What we do doesn’t solve the problem, but it takes some of the stress off of people.” They won’t “hold their breath” for better universal healthcare, she said next, but it would be a better answer to their problem.
Kluender says, “There’s not much point in getting involved after the debt has been sent to collections or after the hospital has been trying to get paid for a year.”
It is said that more than 90% of Americans do have health insurance, but medical debt is a bigger problem. Many people are said to pay a regular fee for the insurance. But when an insurance claim is turned down, medical bills and debt can start to pile up.
Medical debt is a big problem for many reasons. For example, people who owe money on medical bills may not want to go to the doctor, which means they or their children don’t get the care they need. To pay off this debt, people also have to spend less on things like food and other costs.
