CFPB’s final rule eliminating medical debt impacts healthcare providers

The Consumer Financial Protection Bureau (CFPB) recently announced a final rule aimed at eliminating medical debt from Americans’ credit reports and preventing lenders from using medical information in their lending decisions. This rule will remove approximately $49 billion in unpaid medical bills from the credit reports of approximately 15 million Americans.

According to the Kaiser family foundation, the average healthcare insurance deductible is currently approximately $1,800, having doubled since 2010. With the publicity around the final rule, patients may feel less responsibility to pay their portion of services, even when they have the ability to pay. This shortfall in patient collections may impact providers’ ability to serve local communities.

Finalized on Jan. 7, 2025, the rule is scheduled to go into effect March 2025.

What actions should providers take?

Healthcare providers should take steps in these areas.

Price transparency

Proactively offer a way for patients to understand the costs of services so they can select a facility and anticipate the costs.

Online patient portals

Like retail shopping, patients prefer a fast and convenient way to review their services, explore payment plans, and complete transactions with just a click. Create an accessible, online platform allowing patients to easily review their explanation of benefits, payment options, and services which encourages them to make payments.

Train staff and set expectations

Revamp scripts, tools, and education for staff on potential patient funding sources, Health Savings Accounts (HSA), Flexible Spending Accounts (FSA), Medicaid eligibility, and available payment plans to facilitate service payments.