Sen. Bernie Sanders (I-Vermont) called for medical debt to be abolished on Monday in response to news that the country’s three largest credit agencies will be removing paid-off medical debt from credit reports.
Experian and Equifax. TransUnion announced last week that credit reports will no longer include medical debt that went to collections after it’s been paid off. This will eliminate nearly 70% of medical debt from credit reports and will result in the elimination of billions of dollars worth of recorded debts. The grace period before medical credit debt appears on credit reports is also extended by the agencies from six months to one.
Sanders praised the move, but said that it doesn’t go far enough. “‘Medical debt’ and ‘Medical bankruptcy’ are two phrases that should not exist in the United States of America,” Sanders wrote on Twitter. “Removing 70 percent of past-due medical debt from credit reports is a step in the right direction, and much more needs to be done. We must cancel all medical debt.”
Sanders was interviewed earlier in the week. said that he’s planningTo reintroduce legislation to create Medicare for All, as millions of people will lose Medicaid coverage due to a privatization scheme being implemented by the Biden administration. Medicare for All would eliminate most medical payment, reducing or eliminating the need for large amounts of medical debt.
Medical bankruptcy is a problem that is only found in America. In other wealthy countries – all of them with universal health care – medical bankruptcy virtually doesn’t exist. Yet, tens of millions of peopleThe United States is struggling with medical debt about half of the country’s adultsHaving medical debt (though the estimates vary). some research has foundOnly 10% of adults owe any medical debt.
Adults put off needed medical care or skipping prescriptionsBecause of the high costs involved, even those with insurance coverage that cannot afford co-pays or coinsurance. Though it comes at the expense of people’s health, such behavior is understandable given that millions of peopleThese out-of-pocket medical costs are driving Americans into poverty.
Sanders was elected president in his last presidential campaign. campaigned onMedical debt can be eliminated and strict guidelines set out on how to enforce it.
“500,000 Americans will go bankrupt this year from medical bills. They didn’t go to Las Vegas and blow their money at a casino. Their crime was that they got sick,” he said in 2019. “How barbaric is a system that says, ‘I’m going to destroy your family’s finances because you had cancer’?”
According to a 2016 study, Americans had $81 billion in medical debt at the time. A recent study supports this claim. from last yearIt was found that Americans owe $140 billion in medical bills, which is the largest source of debt in collection in the country. This study did not include data on the pandemic which may have contributed to this increase.
Sanders also supported All student debt must be eliminated. The student debt of nearly $1.9 trillion is owed by Americans. according to the Student Debt Crisis CenterAccording to economists, it is the highest amount ever recorded. seriously weighing downThe economy.