The Consumer Financial Protection Bureau’s (“CFPB”) most recent release for regulated entities regarding medical debt collections under the Fair Debt Collection Practices Act (“FDCPA”) is another overstep by the CFPB in its required regulatory processes, ACA International (“ACA”) said in a statement. The CFPB’s so-called “advisory opinion” creates new rules for medical account servicers and debt collectors beyond the FDCPA and Regulation F requirements when conducting medical bill collections. When agencies couch new legislative rules in terms of “advisory opinions,” they violate the federal Administrative Procedure Act (“APA”). The CFPB’s Oct. 1 “advisory opinion” creates a new definition for when a medical account is in “default,” in addition to making other changes that conflict with statutory text and history. Beyond that, the CFPB conflates revenue cycle management for creditors, first-party servicers, and debt collectors. Revenue cycle management involves collecting current medical bills, not defaulted debt under Regulation F and the FDCPA.
Unfortunately, the CFPB’s rhetoric in the “advisory opinion” and accompanying news release on “illegal medical debt collection practices” is in line with the political nature of this release. Attempting to scapegoat hardworking Americans in the receivables management profession who are an extension of medical providers’ businesses is an obvious attempt to put points on the scoreboard during an election without thinking about the repercussions of uninformed policymaking.
The Oct. 1 release occurred the same day as the nationally televised vice-presidential debate and was done in conjunction with the White House. These facts demonstrate the political nature of this issue—which takes away meaningful deliberations involving all stakeholders.
ACA’s members communicate directly with patients and help them navigate existing mechanisms to ensure the bills for their medical care are resolved by the right parties, including arranging affordable payment plans, often with no interest, to pay for their co-pay and deductible. Debt collectors in the accounts receivable management (“ARM”) industry routinely advise patients about charity care, workers compensation coverage, third-party insurance, discounts, and how to examine health care bills in detail.
Contrary to the CFPB’s reports and this pronouncement, ARM industry professionals are often in the best position to help patients review their bill and take time to help them navigate complex health insurance rules.
“The CFPB’s approach of creating ‘rules’ without seeking comment, in violation of the APA, is a transparent political ploy in the mid-election season that creates sound bites but will not bring about thoughtful improvements to the complex issues surrounding health care coverage in America,” said ACA CEO Scott Purcell. To reead more click here.