Non-Credit Data and Credit Files
Washington, DC
September 23, 2010
Medical Payment Data:
Accuracy and Implications
Mark Rukavina, Director
The Access Project
rukavina@accessproject.org
(617) 275-2825
The Access Project
 National health research and advocacy organization
supporting local health access improvement efforts
 Mission: work to strengthen community action, promote
social change, and improve health, especially for those
who are most vulnerable
 Provide technical assistance to local efforts through
research, policy analysis, community engagement, and
communication services
 Nationally recognized for expertise on issue of medical
debt
Today’s Presentation
 Background on Consumer Credit Reports
 Data on Healthcare Affordability and Medical Debt
 Accuracy of Medical Payment Data on Reports
 Medical Debt and Asset Building
 Strategies for Mitigating Medical Debt
 Short Term - Negotiating Reduction of Medical Debt and
Elimination of Payment Data
 Long Term Systems Change - HR 3421 – Medical Debt Relief Act
 Questions
Consumer Credit Reports
 Contents of a report include:
 Identifying Information - name, current and previous
addresses, marital status, Social Security Number, date of
birth, spouse's name, number of dependents, and employment
information.
 Credit Information - credit account numbers, the creditor's
name, the amount of last payment, the credit limit of the
account and the timeliness of the credit payments.
 Public Record Information -tax liens, court judgments, and
bankruptcies.
 Inquiry Section – list of all creditors that have requested and
reviewed a copy of the credit report.
Consumer Reporting Agency Data
 Approximately one billion consumer credit reports are
issued annually in the United States
 One billion credit cards are in use in the United States
 Four and a half billion pieces of data are entered
monthly into credit records
 The Big Three - Equifax, Experian,
and TransUnion, maintain 200 million
credit files, in the United States
Unaffordable Health Care Costs
Plague American Families
 72 million American adults (41%) under the age of 65
experienced medical bill problems
 Problems paying or unable to pay medical bill
 Contacted by a collection agency for unpaid medical bill
 Changed way of life in order to pay medical bill
 Medical debt or
medical bills being
paid off over time
Average Annual Worker and Employer Contributions to Premiums and
Total Premiums for Family Coverage, 1999-2010
$5,791
$6,438*
$7,061*
$8,003*
$9,068*
$9,950*
$10,880*
$11,480*
$12,106*
$12,680*
$13,375*
$13,770*
* Estimate is statistically different from estimate for the previous year shown (p<.05).
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2010.
How Important Are Medical Bills to
American Families?
Medical Accounts on Credit Reports
 More than half (52%) of accounts in collection are
medical bills
 28 million American adults were contacted by a
collection agency for unpaid medical bills
How are Medical Bills Reported to
the Consumer Reporting Agencies?
 According to Experian, data provided directly by
medical providers account for only 7/100’s of one
percent of their data
 TransUnion states that medical debts are not typically
reported unless they become delinquent and are
assigned to collections
 Bills in collection are considered major derogatory
accounts and lower credit scores
Why Are Medical Bills Sent to
Collection?
 Millions of Americans have bills sent to collection
because they are confused about what they owe and
what their health insurance covers.
 According to one recent survey:
 Nearly 40 percent of respondents did not know what services
they were supposed to pay for, or the amount
they owed
 Nearly one-third (31 %) let a medical bill go to a collection as a
result.
How Important Are Collection
Accounts?
The Amount and
Type of
O utstanding
Debt
30%
Length of Credit
History
15%
Record of Timely
Payment on
O ther Loans
35%
Number and
Types of
Accounts
O pened Recently
10%
The Mix of
Credit Accounts,
Credit Cards,
Department
Stores, Finance
Companies,
Bank Loans, etc.
10%
Medical Debt and Trade Lines
on Credit Reports
 Lower credit scores and increase the cost of credit
 Can influence potential employer hiring decisions
In general, if a credit background check revealed information that
presented the job candidate’s financial situation negatively, what
types of information are MOST likely to affect your decision to NOT
extend a job offer?
Source: Society for Human Resource Management, Survey Report “Conducting Credit
Background Checks”
Medical Collection Accounts
Credit Score with Medical Debt
Removed
Short-term Strategies for Correction
Medical Data on Credit Reports
 Verify Accuracy of Information on Credit Report –
annualcreditreport.com
 Remove bills reported to collection in error
 Pay Medical Accounts in Collection
 Negotiate reduction in bills
 Agreement in writing from collection agency that account
will be deleted from credit report when paid in full
Legislative Proposal Removal of
Paid-off Medical Accounts from
Credit Reports
 HR 3421 and S 3419 – Medical Debt Relief Act
 Requires removal of fully paid or settled medical accounts
from credit reports within 45 days of achieving zero
balance due on account
 HR 3421 Voted favorably out of House Financial Services
Committee awaiting action by full House
 S 3419 Awaiting action in Senate
Questions?
Mark Rukavina, Director
The Access Project
rukavina@accessproject.org
(617) 275-2825