Exploring Strategies and Policy Perspectives to Alleviate Medical Debt
Medical debt is a pervasive issue in the United States, leaving countless individuals and families struggling with financial instability. In a recent session of The Circle, I hosted a conversation with Bruce Perry. Bruce is a former attorney with extensive experience in bankruptcy law, who now aims to assist people in negotiating and managing medical debt. This post will provide an overiew of the key points discussed, highlighting practical strategies for dealing with medical bills in collections and broader policy recommendations to address this pervasive problem.
Bruce Perry's Background and Motivation
Bruce Perry has 35 years of legal experience including five years in bankruptcy law. Code Blue Debt is his new venture centered on helping individuals negotiate and manage their medical debts. Even though his practice is still in the preparatory stages, Perry's deep interest in healthcare reform and personal commitment to aiding those in financial distress is evident. Perry focuses on negotiating bills by leveraging his knowledge of contractual law and financial distress management.
Practical Strategies for Negotiating Medical Bills
Understanding Financial Obligations
Perry emphasizes the importance of determining if the bill is correct. The first step is ensuring there are no errors or unqualified charges. Financial aid eligibility is also essential to explore because it could significantly reduce the amount of the bill. However, Perry takes a unique approach by questioning the validity of the debt, arguing that patients should not be responsible to pay more than the fair value of the services rendered.
Challenging the Chargemaster Rates
A cornerstone of Perry's negotiation strategy is challenging the chargemaster rates, which are often exorbitantly high and arbitrary. He argues that a true contractual obligation requires a "meeting of the minds" between parties. This does not happen when a patient goes into a hospital unaware of the eventual costs. Perry points out that recent legal trends and court decisions are increasingly accepting arguments against chargemaster rates. Determining a fair charge could involve referencing Medicare or average insurance reimbursement rates as well as the cash price for services.
Financial Reality and Bankruptcy Insights
Recognizing the financial limitations of patients is another key aspect of Perry's strategy. He cites his bankruptcy law experience to reinforce that "a patient can only pay what they can pay." By presenting a clear picture of a client’s financial situation, Perry aims to negotiate realistic payment plans based on what the patient can afford. This approach not only provides a structured pathway for settling debts but also an empathetic understanding of the patient’s financial constraints.
Broader Policy Recommendations
The Case for Single-Payer Healthcare
Perry’s discussion naturally gravitates towards the need for systemic policy changes to tackle medical debt at its root. Inspired by various healthcare reform advocacies, Perry has long championed the idea of a single-payer system, pointing to the Physicians for a National Health Program as a strong proponent of such reforms. He believes that a national health program or a Medicare for All model could substantially reduce the out-of-pocket expenses and financial burden on individuals.
Critiquing the Affordable Care Act (ACA)
While acknowledging the positive aspects of the ACA, such as the elimination of discrimination based on pre-existing conditions and subsidies for low-income individuals, Perry laments its shortcomings in lowering healthcare costs. Despite the ACA's improvements, many still grapple with overwhelming debt and unaffordable premiums. There is a call for more robust policies addressing the cost structure of healthcare services and providing more substantial financial protections for patients.
Conclusion
In summary, Bruce Perry provides valuable insights into managing and negotiating medical debts. His approach combines a profound understanding of contractual law and realistic financial assessments, offering a lifeline to those drowning in medical bills. Furthermore, his advocacy for systemic healthcare reforms outlines a vision for a more equitable future. As we reflect on these strategies and policy recommendations, it is clear that while individual negotiations bring immediate relief to many, broader changes are essential for long-term solutions to the medical debt crisis.
By integrating practical negotiation techniques with a push for substantial policy reforms, Perry’s multifaceted approach aims to alleviate the burden of medical debt and pave the way for a more just and accessible healthcare system for all.
Final Thoughts:
It was a pleasure to host Bruce and if you are interested in connecting with him directly, you can find him at Code Blue Debt. If you’re interested in learning more about negotiating your medical bills check out How to Save Money on Your Healthcare Tip #4. For more tips on saving money on your healthcare – Check out Choosing Network Providers and Understanding PreAuthorization & Refferals.
All my posts are here to help you on your healthcare journey. Read and learn from them, and let them inspire you! If you are an independent patient advocate and want to be the first to know about new tips and get support, join me in The Circle where we meet LIVE on Zoom every week!