Showing posts with label medical credit. Show all posts
Showing posts with label medical credit. Show all posts

Thursday, August 14, 2014

30 Sickening stats about healthcare and medical debt.

1.  Medical bills are the number one reason for bankruptcy in the United States, causing more than 60% of all BK’s.  Approximately three-fourths of those who go BK because of medical bills have health insurance.

2.  An illness or hospital stay that requires intensive care can easily rack up medical bills over one million dollars.

3.  Every year, it’s estimated that hospitals overcharge Americans by about 10 billion dollars.

4.  Medical billing advocates estimate that over 90% of the medical bills thy audit have “gross overcharges.”

5.  41% of working age Americans are currently paying off medical debt or have some sort of medical bill problems.
  
6.  Hospitals often knock their bills down by 95% for those who know their system and how it works, but the uninsured, uneducated, and secondary language speakers often have no access to these discounts.

7.  The average recovery on hospital medical bills is 15.3%.  Non-hospital medical facilities recover an average of 21.8% of each bill.

8.  U.S. hospitals write off about 5.4% of their gross revenue as bad or unrecoverable patient debt every quarter.

9.  In 2012, 75 million people reported having problems paying off their medical debt, up from only 58 million in 2005.

10.  The average uninsured household has zero assets.

11.  At least 24 pharmaceutical companies made over a billion dollars profit in 2008, alone.

12.  Litigation and liability in the medical system added an estimated $55.6 billion to healthcare costs in 2008 alone.

13.  Americans spend about 200% for healthcare compared to people in other developed nations, but receive much lower quality and efficiency.

14.  The foreign-born population was about two-and-a-half times more likely to be without health insurance than those born in the U.S.

15.  The uninsured end up paying for 35% of their care out-of-pocket.  They are typically billed more and pay more than insured patients.

16.  More than 80% of uninsured are U.S. citizens and 19.7% are non-citizens.

17.  More than 60% of the uninsured have at least one full-time worker in their family, and 16% have at least one part-time worker.

18.  28% of adults with a chronic health condition say they’ve skipped doses or didn’t fill a prescription because of the cost.

19.  In 2012, 43% of adults, or 80 million people, skilled or delayed needed medical care because of the cost. 

20.  That includes 26.8% of families that have experienced the financial burden of trying to pay medical bills.

21.  Almost 1 in 6, or 16.5%, of U.S. families had trouble paying medical bills within the last 12 months.

22.  More than one in three, or 36% of families with children experience financial burdens due to medical care.

23.  More than 1 in 5 families, or 21.4%, were trying to pay their medical bills over time.

24.  Approximately 15.4% of the U.S. population was without health insurance in 2012, or 48.6 million people.

25.  In 2012, Health care spending in the United States grew 3.7% to $2.8 trillion, or $8,915 per person.

26.  Between 1999 and 2009, health insurance premiums for small employers increased by 180%.

27.  U.S. wages increased by 3.8% between 2000 and 2006, but health care cost premiums increased by 87%.

28.  Even during the Great Recession, U.S. healthcare companies cashed in, increasing their profits by 56% just in 2009.

29.  The five biggest for-profit health insurance companies in the U.S. made a combined profit of $12.2 billion just in 2009.

30.  The top executives at those five companies made $200 million in compensation that year.





Tuesday, August 12, 2014

FICO's new Score 9 is a win-win for credit reporting accuracy, consumers with medical debt.

This week, the credit reporting giant FICO reported they’re rolling out an update to their scoring model, FICO Score 9.  Once implemented, it will provide a more accurate and fair way to gauge consumer collections for credit scoring.  The highlight of FICO Score 9 is that it will differentiate medical collections from other consumer credit accounts in collections.  Up until now, those two types of accounts were lumped in together once they hit collections – hurting credit scores the same way.  But with a reported 46 million Americans without health insurance and up to two thirds of bankruptcies caused by unpaid medical bills according to the American Journal of Medicine, a change to the way FICO reported and scored those debts was sorely needed. 

Of course the credit company has a goal of assessing and predicting risk of consumer default for future lenders, and unpaid or overdue medical bills have little real-life correlation to default on other consumer debts.  FICO Score 9 will treat them differently, so a consumer’s score won’t be affected as negatively just from medical bills in collections – better representing the accurate risk. 

While more than a third of Americans have at least debt in collections on their credit file according to a study by the Urban Institute, FICO believes the new model will be able to gauge degrees of risk instead of treating all collections the same.

How much will these changes help or hurt a consumer’s score?  If someone had a clean credit profile except for one major medical debt in collections, their score would increase by an estimated 25 points once FICO Score 9 is implemented.  The changes will be widespread, as FICO is the preeminent credit scoring model in the U.S.  90% of consumer lending decisions take FICO scores into account, with 25 of the largest credit card companies, 25 of the largest auto lenders, and tens of thousands of other businesses looking to them for consumer risk assessment and federal compliance.  
“FICO Score 9 uses a more refined treatment of consumers with a limited credit history and those with accounts at collection agencies, so that lenders can grow their credit and loan portfolios more confidently,” said Jim Wehmann, Executive VP at FICO.

The downside?  It will take a while for FICO Score 9 to be implemented – maybe even a couple years, as software and systems are updated.  Also, Fannie Mae and Freddie Mac haven’t adopted this new scoring model as of yet, so the scoring changes won’t benefit consumer lending. 


If you have significant medical bills, accounts in collections, or any questions about FICO Score 9 and your credit score, feel free to contact us for a no-risk consultation.  It could save you big money!

Thursday, March 20, 2014

How many credit reporting agencies are there? If you said 'three,' you're way off!


If we asked most Americans how many credit bureaus there were, their answer would almost always be, “three.”  A good number of people could probably even name them as Experian, Equifax, and Transunion, and feel proud of their knowledge of the credit industry.  But very few people realize that there are actually a multitude of credit bureaus reporting your every mortgage, credit card, and occasional late payment, more than 35+ lesser-known ones at last count. 

Why are there so many?  Some of them replicate the scoring models and functionality of the big three, while others serve specific esoteric niches in the financial market.  It’s estimated that up to 50 million Americans have little or no data reporting with the major credit bureaus, so alternate reporting services help credit-light borrowers to qualify for basic loans or services, like utilities, cell phones, and rental housing.  Business loans, employment hiring decisions, and insurance coverage are all affected by what’s on your credit report, but better served by alternate reporting agencies.

For instance, payment information from your medical records is a totally separate form of credit, and businesses have their own commercial credit score.  Bank accounts, bankruptcies, liens, rent-to-own companies, pay-day lenders, subprime auto loans, check fraud, courthouse information, day care payments, and billing from club memberships are even documented by alternative credit reporting agencies. 

For most people, three reporting agencies keeping tabs on their every financial move is more than enough, but if you have an issue with something more than just mortgages, credit cards, and installment loans, you might want to check into what these alternate reporting agencies are saying about you.  Just like with traditional credit score, there’s usually a process for disputing incorrect items or engaging in certain responsible financial behaviors to raise your score. 

Here’s a rundown of some of the alternative credit reporting agencies.  They are under headings but any of these agencies offer reporting on several and overlapping types of reporting, so contact us if you need clarification or need help. 


Banking and Check History CRAs: 

ChexSystems
Certegy Check Services
Telecheck 


Payday Lending Reporting Agencies:
Factor Trust 

Clarity Services 

CL Verify Microbilt
CoreLogicTeletrack
DataX 


Auto and Property Insurance Reporting Agencies:
Insurance Services Office (ISO) (A Plus Property Reports)
Insurance Information Exchange
L.N. (Clue Personal Property Report)
L.N. (Clue Auto Report) 


Supplementary/Alternative Credit Reporting Agencies:  CoreScore Credit Report
L2C
Pay Rent Build Credit (PRBC)/Microbilt
ID Analytics
Innovis
Lexis Nexis Screening Solutions. Inc. 

Fico Expansion Score


Utility Credit Reporting Agencies:
National Consumer Telecom and Utilities Exchange 


Rental Reporting Agencies:
Core Logic SafeRent 

LexisNexis Screening Solutions Inc. Resident History Report
Leasing Desk (Real Page)

Tenant Data Services and Medical Reporting Agencies: 

Medical Information Bureau
MillimanIntelliScript 


Employment Reporting Agencies:
Accurate Background
Contemporary Information Corp. 

Early Warning Services 

EmployeeScreenIQ 

First Advantage
GIS
HireRight
Infocubic
Intellicorp
Pre-Employ.com
Trak 1 Technology
Verifications Inc.
The Work Number