During a White House event on 11th April, Vice President Kamala Harris revealed new steps to lower the price of federal housing loans for Americans with unpaid medical debt and make things simpler for veterans who wish to have healthcare costs pardoned.

Prepare to dive into the details of the announcement, its reasons, and the measures taken to put it into effect.

Background

The actions emerge as the White House looks for methods to cut costs for Americans dealing with rampant inflation due to the coronavirus outbreak, which has resulted in some of the most significant price rises in 40 years.

“I’ve met so many individuals in numerous towns across our country who are battling with this burden, most of whom are dealing with several illnesses or injuries simultaneously and who lie awake at night worrying if they’ll ever be able to pay back their debt,” Harris said.

“No one in our country should have to go through something like that.”

America’s Federal Reserve began hiking interest rates due to increased prices, leading to increased mortgage and consumer credit expenses.

“The President and I recognize that growing living costs are one of the most significant concerns confronting working Americans today,” Harris added.

According to the government, medical loans affect over one-third of all adults in the United States, accounting for more debt recovery than credit card payments, utilities, and vehicle loans collectively.

What Do the Efforts Entail?

Among the initiatives is a movement within the federal administration to avoid taking medical debt into account when deciding loan eligibility, especially in programs like the Agriculture Department’s $20 billion rural housing program.

Since the government does not consider how much money candidates owe in medical bills, those in debt must be able to get better conditions on loans to build or buy new houses.

The Veterans Affairs Department will also stop reporting to credit reporting organizations any debt that veterans owe the VA for health coverage and modernize programs that help retired service personnel get a few of their medical obligations erased.

The government will develop an online platform to review forgiveness petitions and streamline eligibility criteria to increase the proportion of people who use existing debt relief programs.

Way Forward

The Consumer Financial Protection Bureau (CFPB) is set to produce a report on customer complaints about medical claims later in April, and it stated that it is launching a new investigative operation to prevent illegal medical debt recovery.

The agency earlier stated that it is looking into if medical debts must be entirely erased from consumer credit scores.

America’s Human Services Department has requested information on bill collection techniques, financial product sales, and debt-buying operations from over 2,000 healthcare practitioners.

The government said it would begin considering that information when determining federal grants to discourage hospitals and medical care centers from abusing billing processes.

Wrapping Up

For decades, Americans have been struggling with medical debt. As healthcare prices continue to rise, it is easy to become overwhelmed with the associated costs.

The new rules are already going into effect and are intended to make it easier for borrowers to pay off their debts. The new measures will assist consumers in managing and lowering their healthcare debt.

If you’re having difficulties controlling your healthcare bills, this is an excellent option to do so!