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New Biden administration rule would ban medical debt from credit reports

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Originally published by The 19th

Vice President Kamala Harris on Tuesday announced a new effort to ban medical debt from credit reports, something that would ease a burden that falls most heavily on women and Black people.

“Medical debt makes it more difficult for millions of Americans to be approved for a car loan, a home loan or a small business loan, all of which in turn makes it more difficult to just get by, much less get ahead, and that is simply not fair. Especially when we know that people with medical debt are no less likely to repay a loan than those without medical debt,” Harris said. “No one should be denied access to economic opportunity simply because they experienced a medical emergency.”

Federal efforts to remove medical debt from credit reports began last fall after Harris announced that the Consumer Financial Protection Bureau (CFPB) would take the first steps to create rules that would take medical bills off credit reports, prohibit creditors from using medical bills to make underwriting decisions and ban collectors from using medical debt to pressure consumers to make payments. These proposals would narrow the 2005 exemption in the Fair Credit Reporting Act, which allowed creditors to use medical debts in underwriting credit decisions. Creditors would still have the ability to access medical debts and bill information in certain instances, such as to evaluate loan applications for medical services.

Other federal efforts to curb medical debt include the No Surprises Act, which took effect in July 2022 and requires private health insurers to cover most emergency services, emergency care and non-emergency in-network services and prohibits medical providers from billing patients more than in-network cost sharing.

The rule change could lead to more people being able to borrow money, as CFPB Director Rohit Chopra said it would give lenders more accurate and predictive information about borrowers.

“The 15 million Americans who would benefit from this credit reporting change would see their scores rise by an average of 20 points. … For mortgages alone, we estimate that this could lead to approximately 22,000 additional home loans each year,” he said. “Our action today is an important step toward reducing some of the unnecessary costs of getting sick in America.”

According to a senior administration official, this rule would include historical medical bill information and dental debt.

Other federal efforts to curb medical debt include the No Surprises Act, which took effect in July 2022 and prohibits surprise billing for most emergency services and non-emergency services done out-of-network.

The nationwide credit reporting agencies, which are Equifax, Experian and TransUnion, removed medical debt under $500 from consumer credit reports as of April 2023. However, this April, the CFPB released research that found 15 million Americans still have medical debt on their credit reports — particularly those in the American South and low-income communities. A March 2022 report from the CFPB found that Americans were harboring $88 billion in medical debt.

A KFF Health Policy Research analysis published this year based on the 2021 national Survey of Income and Program Participation found that 20 million people owed a collective $220 billion in medical debt. The analysis found that 13 percent of people with disabilities reported having medical debt, compared with 6 percent of those without a disability. It also found that non-Hispanic Black people carry more medical debt than other racial and ethnic groups, and women carry more than men. A separate analysis found that 14 percent of people who gave birth within the last year and a half reported having medical debt, compared with 7 percent of those who did not.

“Since we know that Black adults and women are more at risk of having medical debt, then I would expect this policy would benefit those groups,” said Cynthia Cox, KFF vice president and director of the foundation’s Program on the Affordable Care Act, which examines health care coverage costs, affordability and accessibility.

Undue Medical Debt, the nonprofit formerly known as RIP Medical Debt that contacts hospitals and health care systems requesting that they sell or donate portions of patients’ debt, and Perry Undem, a nonpartisan public opinion research firm, surveyed over 2,600 adults in August 2023, 229 of whom were Black women. Among Black women, 27 percent said they have delayed or said no to health services out of concerns over acquiring medical debt. A study from the American Cancer Society published in March suggested that “medical debt is associated with worse health status, more premature deaths, and higher mortality rates at the county level in the US.”

In 2022, YouGov, a research data and analytics technology group, reported that 66 percent of Americans supported government relief for medical debt. Eva Stahl, the vice president of public policy and program management at Undue Medical Debt, attributes this support to the fact that it can impact anyone.

“It’s not a debt of choice, it’s a debt of necessity. Because there’s a general consensus about that, it’s not really a partisan issue,” she said.

Stahl said they have gotten interest from legislators across the nation, even in the South, with some jurisdictions in Texas and Kentucky showing interest in erasing residents’ medical debt. Some state-level efforts to erase medical debt for state residents have either passed or been proposed — some in partnership with Undue Medical Burden.

In June 2023, Colorado became the first state to prohibit medical debt from being included on residents’ credit reports. Similar legislation was passed this year in Connecticut and proposed in New Jersey.

Last year, Connecticut’s state legislature approved a budget that would allocate $6.5 million in American Rescue Plan (ARP) funding toward erasing medical debt for residents whose medical debt is 5 percent of their income or whose household income is up to 400 percent of the federal poverty line. Earlier this year, Arizona Gov. Katie Hobbs, a Democrat, announced efforts to use $30 million of ARP funding to cancel medical debt for up to 1 million Arizonans, using similar criteria as Connecticut. Both states partnered with Undue Medical Debt

To Stahl, removing medical debt from credit reports has limitations.

“It’s an action that is helpful, but it’s not getting it’s not at the it’s not at the root,” which is “that people don’t have access to affordable high quality health care,” Stahl said. “Even if you banned medical debt from credit reports, which is an important and worthy exercise, people still have unpaid medical bills. … Patients will still feel the stress of having debt collectors call them several times a day, asking them when they’re going to pay their medical bills, or they may get into payment plans that they can’t really afford.”

A senior administration official said public comments are being accepted through August 12. They expect the rule to be finalized early next year.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Mississippi Today

On this day in 1934

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mississippitoday.org – Jerry Mitchell – 2024-11-21 07:00:00

Nov. 21, 1934

Ella Fitzgerald sings at Downbeat, a New York City jazz club, while Dizzy Gillespie, Ray Brown, Milt (Milton) Jackson, and Timme Rosenkrantz listen.

Ella Fitzgerald, the “Queen of Jazz,” made her debut at the Apollo Theater in Harlem. She had planned to go on stage and dance for Amateur Night, but when the Edwards Sisters danced before her, she decided to sing instead. That break led to others, and she became a sensation after a song she co-wrote, “A-Tisket, A-Tasket,” became a major hit in 1938. 

She battled racism, ordered by Pan-Am to leave their flight to Australia. Despite missing two concerts there, she went on to set a new box office record in Australia. She helped to break racial barriers, refusing to perform before segregated audiences. The NAACP awarded her the Equal Justice Award and the American Black Achievement Award. 

Fitzgerald became the first Black woman to win a Grammy. In her music, she innovated with scat singing, sang be-bop, jazz and even gospel hymns. She performed with her own orchestra, the Benny Goodman Orchestra, Duke Ellington and Count Basie, and her Song Book series became a huge critical and commercial success. 

She performed in Hollywood films, and her most memorable take on television came when her voice shattered a glass. When the tape was played back, her voice broke another glass, and the ad asked, “Is it live, or is it Memorex?” 

By the time she died in 1996, she had won 13 Grammy Awards, the Grammy Lifetime Achievement Award, the George and Ira Gershwin Award for Lifetime Musical Achievement, the National Medal of Arts and the Presidential Medal of Freedom. 

Mattel has now designed a doll after her, part of the Barbie Inspiring Women Series, which “pays tribute to incredible heroines of their time — courageous women who took risks, changed rules and paved the way for generations to dream bigger than ever before.”

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippians ask U.S. Supreme court to strike state’s Jim Crow-era felony voting ban

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mississippitoday.org – Taylor Vance – 2024-11-21 04:00:00

A group of Mississippians who were stripped of their voting rights is asking the U.S. Supreme Court to strike a provision of the state Constitution that allows denial of suffrage to people convicted of some felonies. 

The Mississippi residents, through attorneys with the Southern Poverty Law Center and private law firm Simpson Thacher and Bartlett, filed an appeal Friday with the nation’s highest court. They argue that the provision of the state Constitution that strips voting rights for life violates the U.S. Constitution’s Eighth Amendment protection against cruel and unusual punishment. 

Jonathan Youngwood, global co-chair of Simpson Thacher’s litigation department, told Mississippi Today in a statement that after filing the petition with the Court, he remains confident in the case, and the firm’s clients remain committed to ensuring their right to vote is restored. 

“The right to vote is an important cornerstone of democracy and denying broad groups of citizens, such as those who have completed their sentences for criminal convictions, deserve the full right of participating in our representative government,” Youngwood said. 

Under the Mississippi Constitution, people convicted of a list of 10 felonies lose their voting rights for life. Opinions from the Mississippi Attorney General’s Office have since expanded the list of disenfranchising felonies to 24. 

The practice of stripping voting rights away from people for life is a holdover from the Jim Crow-era. The framers of the 1890 Constitution believed Black people were most likely to commit those crimes. 

About 55,000 names are on the Secretary of State’s voter disenfranchisement list as of March 19. The list, provided to Mississippi Today and the Marshall Project-Jackson through a public records request, goes back to 1992 for felony convictions in state court. 

The only way for someone to have their suffrage restored is to convince lawmakers to restore it, but the process is arduous. It necessitates a two-thirds majority vote in both legislative chambers, the highest vote threshold in the state Capitol.

Governors can restore suffrage through issuing pardons, but no governor has issued one since the waning days of Gov. Haley Barbour’s administration in 2012. 

In August, a three-judge panel of the 5th Circuit Court of Appeals, in a 2-1 decision, agreed with the plaintiffs and found that the lifetime voting ban violates the U.S. Constitution. But the full court, known for its conservative rulings, overturned the decision of the three-judge panel.

Mississippi Attorney General Lynn Fitch’s office is defending the state in the appeal, and it has not yet responded to the plaintiff’s petition with the U.S. Supreme Court. It’s unclear when the Court will issue a ruling on the petition.  

While the litigation is pending, state lawmakers have attempted to reform the state’s felony suffrage process. 

The GOP-controlled house last year passed a bipartisan proposal to automatically restore suffrage to people convicted of nonviolent disenfranchising felonies after they’ve completed the terms of their sentence. 

The legislation, however, died in the 52-member Senate because Senate Constitution Chairwoman Angela Burks Hill, R-Picayune, declined to bring the bill up for a vote before a deadline. House leadership is expected to address the issue again during its 2025 session. 

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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JXN Water to send notices about lead line inventory

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mississippitoday.org – Alex Rozier – 2024-11-20 17:07:00

JXN Water said Wednesday it’s confirmed no lead in about 43% of the city’s service lines, and that it will continue to investigate the remaining lines as it complies with recently updated guidelines from the Environmental Protection Agency.

A representative for Jacobs, a contractor that manages the city’s drinking water plants for JXN Water, told Mississippi Today their goal is to fully determine whether there’s lead in any of the city’s nearly 75,000 service lines by 2027.

Yvonne Mazza-Lappi, water compliance manager for Jacobs, said JXN Water has so far identified nearly 14,000 galvanized iron service lines, or about 18% of the total amount. For each of those lines, she explained, JXN Water will have to find out if they were ever downstream of a lead service line, as lead particles can attach to the surface of those pipes according to the EPA. If so, JXN Water will have to replace the galvanized line.

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There are another roughly 29,000 service lines, she added, where the material is unknown.

“With this inventory, the EPA requires certain validation,” Mazza-Lappi said. “So we can’t just assume that someone’s service line is non-lead. We have to prove that. We use historical records. If we don’t have enough of those, we do build inspections.”

The EPA in October finalized a revision to its Lead and Copper rule, requiring public water systems around the country to find and replace lead service lines over the next decade.

JXN Water released a mapping tool where residents can look up their address and see the latest information for their service line, both on the customer side and the utility side. JXN Water spokesperson Aisha Carson said the utility will mail notices this week to residents that fall in the “unknown” or “galvanized” categories.

Mazza-Lappi said that so far, JXN Water has found just four lead service lines in the city, and that it replaced those lines earlier this year. She said they also offered those residents filters and will do follow-up sampling in January to make sure their water meets federal standards.

While there are still tens of thousands of lines to examine to make sure there’s no lead present, Mazza-Lappi said that their predictive modeling suggests there’s no widespread presence.

In the notices JXN Water is mailing to customers with galvanized lines or lines with unknown materials, the utility lists a number of ways to reduce the risk of lead contamination, such as letting the tap run before drinking, using a filter, or cleaning faucet screens and aerators.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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