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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 1911

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mississippitoday.org – Jerry Mitchell – 2024-12-21 07:00:00

Dec. 21, 1911

A colorized photograph of Josh Gibson, who was playing with the Homestead Grays Credit: Wikipedia

Josh Gibson, the Negro League’s “Home Run King,” was born in Buena Vista, Georgia. 

When the family’s farm suffered, they moved to Pittsburgh, and Gibson tried baseball at age 16. He eventually played for a semi-pro team in Pittsburgh and became known for his towering home runs. 

He was watching the Homestead Grays play on July 25, 1930, when the catcher injured his hand. Team members called for Gibson, sitting in the stands, to join them. He was such a talented catcher that base runners were more reluctant to steal. He hit the baseball so hard and so far (580 feet once at Yankee Stadium) that he became the second-highest paid player in the Negro Leagues behind Satchel Paige, with both of them entering the National Baseball Hame of Fame. 

The Hall estimated that Gibson hit nearly 800 homers in his 17-year career and had a lifetime batting average of .359. Gibson was portrayed in the 1996 TV movie, “Soul of the Game,” by Mykelti Williamson. Blair Underwood played Jackie Robinson, Delroy Lindo portrayed Satchel Paige, and Harvey Williams played “Cat” Mays, the father of the legendary Willie Mays. 

Gibson has now been honored with a statue outside the Washington Nationals’ ballpark.

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

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On this day in 1958

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mississippitoday.org – Jerry Mitchell – 2024-12-20 07:00:00

Dec. 20, 1958

Bruce Boynton played a key role in the U.S. Supreme Court case that led to the Freedom Riders protests of 1961. Credit: Jay Reeves/Associated Press

Bruce Boynton was heading home on a Trailways bus when he arrived in Richmond, Virginia, at about 8 p.m. The 21-year-old student at Howard University School of Law — whose parents, Amelia Boynton Robinson and Sam Boynton, were at the forefront of the push for equal voting rights in Selma — headed for the restaurant inside the bus terminal. 

The “Black” section looked “very unsanitary,” with water on the floor. The “white” section looked “clinically clean,” so he sat down and asked a waitress for a cheeseburger and a tea. She asked him to move to the “Black” section. An assistant manager followed, poking his finger in his face and hurling a racial epithet. Then an officer handcuffed him, arresting him for trespassing. 

Boynton spent the night in jail and was fined $10, but the law student wouldn’t let it go. Knowing the law, he appealed, saying the “white” section in the bus terminal’s restaurant violated the Interstate Commerce Act. Two years later, the U.S. Supreme Court agreed. “Interstate passengers have to eat, and they have a right to expect that this essential transportation food service,” Justice Hugo Black wrote, “would be rendered without discrimination prohibited by the Interstate Commerce Act.” 

A year later, dozens of Freedom Riders rode on buses through the South, testing the law. In 1965, Boynton’s mother was beaten unconscious on the day known as “Bloody Sunday,” where law enforcement officials beat those marching across the Selma bridge in Alabama. The photograph of Bruce Boynton holding his mother after her beating went around the world, inspiring changes in voting rights laws. 

He worked the rest of his life as a civil rights attorney and died in 2020.

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‘Something to be proud of’: Dual-credit students in Mississippi go to college at nation’s highest rate

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mississippitoday.org – Molly Minta – 2024-12-20 06:00:00

Mississippi high school students who take dual-credit courses go to college at the nation’s highest rate, according to a recent report. 

It’s generally true that students who take college classes while in high school attend college at higher rates than their peers. Earlier this year, a study from the Community College Research Center at Teacher’s College, Columbia University found that nationally, 81% of dual-credit students go to college. 

In Mississippi, that number shoots up to 93%, meaning the vast majority of the state’s high school students who take college classes enroll in a two- or four-year university. 

“When we did this ranking, boom, right to the top it went,” said John Fink, a senior research associate and program lead at the research center who co-authored the study. 

State officials say there’s likely no silver bullet for the high rate at which Mississippi’s dual-credit students enroll in college. Here, “dual credit” means a course that students can take for both high school and college credit. It’s different from “dual enrollment,” which refers to a high school student who is also enrolled at a community college. 

In the last 10 years, participation in these programs has virtually exploded among Mississippi high school students. In 2014, about 5,900 students took dual-credit courses in Mississippi, according to the Mississippi Community College Board. 

Now, it’s more than 18,000. 

“It reduces time to completion on the post-secondary level,” said Kell Smith, Mississippi C0mmunity College Board’s executive director. “It potentially reduces debt because students are taking classes at the community college while they’re still in high school, and it also just exposes high school students to what post-secondary course work is like.” 

“It’s something to be proud of,” he added. 

There are numerous reasons why Mississippi’s dual-credit courses have been attracting more and more students and helping them enroll in college at the nation’s highest rate, officials say. 

With a few college credits under their belt, students may be more inspired to go for a college degree since it’s closer in reach. Dual-credit courses can also build confidence in students who were on the fence about college without requiring them to take a high-stakes test in the spring. And the Mississippi Department of Education’s accountability model ensures that school districts are offering advanced courses like dual credit.

Plus, Mississippi’s 15 community colleges reach more corners of the state, meaning districts that may not be able to offer Advanced Placement courses can likely partner with a nearby community college.

“They’re sometimes like the only provider in many communities, and they’re oftentimes the most affordable providers,” Fink said.

Test score requirements can pose a barrier to students who want to take dual-credit courses, but that may be less of a factor in Mississippi. While the state requires students to score a 19 on ACT Math to take certain courses, which is above the state average, a 17 on the ACT Reading, below the state average of 17.9, is enough for other courses. 

Transportation is another barrier that many high schools have eliminated by offering dual-credit courses on their campuses, making it so students don’t have to commute to the community colleges to take classes. 

“They can leave one classroom, go next door, and they’re sitting in a college class,” said Wendy Clemons, the Mississippi Department of Education’s associate state superintendent for secondary education. 

This also means high school counselors can work directly with dual-credit students to encourage them to pursue some form of college.

“It is much less difficult to graduate and not go to college when you already possess 12 hours of credit,” Clemons said.

Word-of-mouth is just as key.

“First of all, I think parents and community members know more about it,” Clemons said, “They have almost come to expect it, in a way.” 

This all translates to benefits to students. Students who take dual-credit courses are more likely to finish college on time. They can save on student debt.

But not all Mississippi students are benefiting equally, Fink said. Thr research center’s report found that Black students in Mississippi and across the country were less likely to pursue dual-credit opportunities. 

“The challenge like we see in essentially every state is that who’s in dual enrollment is not really reflective of who’s in high school,” Fink said.

Without more study, it’s hard to say specifically why this disparity exists in Mississippi, but Fink said research has generally shown it stems from elitist beliefs about who qualifies for dual-credit courses. Test score requirements can be another factor, along with underresourced school districts. 

“The conventional thinking is (that) dual enrollment is just … another gifted-and-talented program?” Fink said. “It has all this baggage that is racialized … versus, are we thinking about these as opportunities for any high school student?”

Another factor may be the cost of dual-credit courses, which is not uniform throughout the state. Depending on where they live, some students may pay more for dual-credit courses depending on the agreements their school districts have struck with local community colleges and universities. 

This isn’t just an equity issue for students — it affects the institutions, too. 

“You know, we’ve seen that dual-credit at the community college level can be a double-edged sword,” Smith said. “We lose students who oftentimes … want to stay as long as they can, but there are only so many hours they can take at a community college. 

Dual-credit courses, which are often offered at a free or reduced price, can also result in less revenue to the college. 

“Dual credit does come at a financial price for some community colleges, because of the deeply discounted rates that they offer it,” Smith said. “The more students that you have taking dual-credit courses, the more the colleges can lose.” 

State officials are also working to turn the double-edged sword into a win-win for students and institutions. 

One promising direction is career-technical education. Right now, the vast majority of dual credit students enroll in academic courses, such as general education classes like Composition 1 or 2 that they will need for any kind of college degree. 

“CTE is far more expensive to teach,” Clemons said.

Smith hopes that state officials can work to offer more dual-credit career-technical classes. 

“If a student knows they want to enroll in career-tech in one of our community colleges, let’s load them up,” Smith said. “Those students are more likely to enter the workforce quicker. If you want to take the career-tech path, that’s your ultimate goal.”

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

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