The SBREFA Outline
In late September, the Consumer Financial Protection Bureau (CFPB) released a Small Business Regulatory Enforcement Fairness Act (SBREFA) outline that would have a major impact on healthcare as we know it. In a news release, the CFPB said that its goal is “to remove medical bills from Americans’ credit reports,” drastically affecting healthcare providers nationwide. The outline, related to the Fair Credit Reporting Act and its proposed timeline, gives healthcare providers less than a month to grasp the sweeping changes and respond to the SBREFA proposal. It seeks to alter major parts of the credit reporting process, targeting medical providers and other industries.
Potential Candidates for SBREFA
In addition to the small review window, the CFPB is still in the process of reviewing candidates to serve as entity representatives to meet with the SBREFA Panel, which is required under the Dodd-Frank Act. Essentially these are private meetings where small businesses can inform the CFPB about the economic and compliance impact that new rules like this will have on their ability to survive.
The Impact of the SBREFA Outline
While the CFPB believes that they are helping Americans by removing medical debt from credit reports, they aren’t considering how that will impact the healthcare industry. The amount of medical debt in the U.S. is staggering. A Peterson-KFF report stated that in 2019 people in the U.S. owed at least $195 billion in medical debt. The CFPB believes that by removing the debt from credit reports, we remove the problem. In reality, the new SBREFA proposal will remove any urgency for patients to pay their medical bills, which will lead to a considerable increase in unpaid medical debt. Healthcare providers are already fighting an uphill battle to get paid, and this change will cause many hospitals that are struggling to survive to close their doors, leading to even higher costs and lower quality of care.
Americollect is ready to fight this battle, but it can’t be just us alone. For us to help your organization remain financially stable as you continue in your mission to serve your communities, you need to join the fight and take action now. Speak to your representatives and tell them about the negative impact this will have on not just your facility, but anyone seeking healthcare. There will be more information released on these proposed rules and Americollect will keep you up to date on what is happening.
Ridiculously Nice Legal Disclaimer
The content provided in this communication (“Content”) is presented for educational and general reference purposes only. Americollect, Inc and/or AmeriEBO LLC either directly or indirectly through speakers, independent contractors, or employees (collectively referred to as “Americollect”) is providing this Content as a courtesy to be used for informational purposes only. The Contents are not intended to serve as legal or other advice. Americollect does not represent or warrant that the Content is accurate, complete, or current for any specific or particular purpose or application. This information is not intended to be a full and exhaustive explanation of the law in any area, nor should it be used to replace the advice of your own legal counsel. By using the Content in any way, whether or not authorized, the user assumes all risk and hereby releases Americollect from any liability associated with the Content.