Medical Debt Erasure

Trust me providers do not work in cahoots with insurance companies in the way you think. Join some of the calls I am on with providers discussing contracts and the calls can get nasty LOL.

I think it’s time to erase tax debt.

Yep.

But you forgot one thing.

Hospital bills the uninsured person many times more what they would bill the insurance company for the same work. Knowing that they will have to settle for pennies on the dollar from (most likely) a bankruptcy, they jack those dollars way up.

So those worried that the hospitals are losing here, they artificially jack these rates knowing exactly how it’s all gonna end.

Lol!

Trump’s tax cuts would like a word.

Lets have a once on a lifetime reset, all debt erased and everones credit score set to 800.

We start from zero again.

(Of course I am not being serious but its an interesting thought experiment)

:grinning::grinning::grinning::grinning::grinning:

Let’s forgive the federal debt while we are at it?
It is currently $101,700 per person and rises every time we (ahem, cough cough)“forgive” other debts.

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OH wait, I was wrong.

Normally when we “forgive” debt it just becomes part of gov’t debt.
That’s not the case with alimony debts or child support debts.
We can forgive those and it’s free!

Let’s start there.

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That’s an interesting idea. How does it work?

Just like student loan forgiveness and medical debt erasure. :grin:

This law firm says that’s ■■■■■■■■■

As does this site.

Medical Bills Can Go to Collections Even If You’re Paying

Many of us pay down our medical bills by making regular payments. This approach may be financially beneficial, but it does not guarantee you will avoid collections. Those who think they can get away with paying only a portion of the bill could suddenly find themselves hearing from a collection agency if the debt hasn’t been paid off in an acceptable time frame. Same with those who aren’t paying on time.

…and this one

Common Non-Law, Legal Urban Myths

Your question brings up a phenomenon I see often in the consumer finance theater, “the common non-law.”

I can’t tell you the number of times I have been told, “The creditor can’t do anything if you make a payment every month on the debt.” The rule is stated as if the amount is not really important so long as something is paid each and every month. This rule is nonsense and has no basis in law.

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That’s personal debt. Taxes would pay that forgiveness. What would pay for forgiving tax debt?

On and after July 1, 2024, any health care provider or any collection entity doing business in this state shall not report any portion of a medical debt to a credit rating agency for use in a credit report. A health care provider doing business in this state shall include in any contract entered into with a collection entity on and after July 1, 2024, for the purchase or collection of medical debt a provision that prohibits the reporting of any portion of such medical debt to a credit rating agency.

(c) Any portion of a medical debt that is reported to a credit agency shall be void

More from connecticut. (c) is a surprising but very effective way to squash accounting games. Collection agencies better play this conservatively or risk making the the debt worthless.

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I didn’t realize how much time had passed since I posed this.

I sure would appreciate your answer @Gaius.

It would work the same as waiving library fines. Just set all unpaid tax amounts equal to 0.

Add to the deficit?
Sure, exactly like forgiving student loans of medical debt would.

I didn’t ask how it would work, I asked what (or who) would pay for it.

Depends on how the funds to buy the junk grade debt are raised. If private individuals decide to voluntarily contribute funds (give a charitable donation) to purchase, and then forgive someone else’s medical debt, more power to them. But to take involuntarily demanded public funds and pass the costs onto current and future collective generations is garbage. And all the emotional appeals and virtue signaling in the world won’t change that.

He and I were talking about forgiving tax debts, not medical debts.

Unlike student loan forgiveness and medical debt forgiveness, with tax debt forgiveness no money need change hands so . . “no ne” would pay for it.

Just write it all off like a bad debt. Since it is debt (unpaid taxes)there was no money there in the fist place no money needs to be disbursed, no no funds need to change hands.

Day1 (some date in the past):
You need(ed) bread or a house or a car or braces for your kid, or an employee for your company.
Fred provides that for a fee.
Gov’t said “Not so fast, Fred. You can’t just go around providing people with stuff they want and need. We are gonna collect a fee.”
.
.
.
Fast forward 1, 2 or 3 years or more, Fred still has not paid the tax
Gov’t “Ya know what Fred? We’ve changed out minds. Ya did a good thing. You can keep the money this time.”

Just have a massive one off debt forgiveness for everything. Government writes a check and clears all debts for everyone in the US. Loans, credit cards, medical debt, student loans, the whole shebang.

After all the government can just print more money :grinning::wink:.

I wonder if anyone has ever seriously suggested that.

:rofl::rofl::rofl::rofl: