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Daily Briefing

Around the nation: 27M Americans see credit score jump after medical debt removed from credit reports


A new analysis from the Urban Institute found that removing medical debt from credit reports helped increase the credit scores of millions of Americans, in today's bite-sized hospital and health industry news from the District of Columbia, Georgia, and Maryland. 

  • District of Columbia: According to a new analysis from the Urban Institute, the share of Americans with medical debt on their credit reports has decreased dramatically after major credit rating agencies removed small unpaid bills and debts less than a year old. As of August, only 5% of adults with a credit report had medical debt on their report, down from nearly 14% two years ago. The removal of these medical debts has also helped increase the VantageScore credit scores of millions of Americans, going from an average of 585 to 615. This improvement moved many consumers out of the subprime category, making it easier for them to get a job, car, or an apartment. "This is a very significant change," said Breno Braga, an economist at the Urban Institute and a co-author of the study. Although debt collectors and some medical providers have criticized the removal of medical debt from credit scores, consumer and patient advocates have applauded the change. The Biden administration also announced plans to introduce federal regulations eliminating all medical debts from credit scores. Similar state-level efforts are also underway in Colorado and New York. (Levey, Kaiser Health News, 11/2)
  • Georgia: Fulton County health officials say that a pilot program allowing people to test for sexually transmitted infections (STIs) at home could become a powerful public health tool. In June 2022, the Fulton board of health partnered with Ash Wellness, an at-home diagnostic company, to distribute almost 1,700 free take-home STI testing kits. The kits were given out through the mail, county clinics, and mobile units at public events. In the first year of the program, 40% of patients who used the kits had not been tested the year prior, and 20% had not been tested for HIV. According to health officials, the program could expand outreach to individuals who are uncomfortable seeking out STI testing and help PrEP users monitor their HIV status more easily. "If I can send someone COVID tests on a regular basis like this from home, what are the other things that we can do from home," said Joshua O'Neal, director of the Fulton board of health. Currently, county officials are looking for additional sources of funding to expand the program, which was initially paid for with federal funding. (Wheatley, Axios, 10/30)
  • Maryland: Lawrence Faucette, a 58-year-old man who received a heart transplant from genetically modified pig, died last week, around six weeks after his transplant. He was the second patient to receive a xenotransplant of a pig heart at the University of Maryland Medical Center. The first patient who received a pig heart transplant died last year, two months after his transplant. According to the New York Times, both patients had terminal heart disease and were not eligible for traditional organ transplants. After Faucette's surgery, the transplanted heart performed well during the first month but later began to display some signs of rejection. "We mourn the loss of Mr. Faucette, a remarkable patient, scientist, Navy veteran and family man, who just wanted a little more time to spend with his loving wife, sons and family," said Bartley Griffith, the surgeon who performed Faucette's transplant. "Mr. Faucette's last wish was for us to make the most of what we have learned from our experience, so others may be guaranteed a chance for a new heart when a human organ is unavailable." (Rabin, New York Times, 10/31)

Infographic: The patient financial journey

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