SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
medical debt
Maine Nonprofit Cancels $1.9 Million in Medical Debt for 1,500 People
"This is just a drop in the bucket," a campaigner said. "Now, it's up to our lawmakers to make healthcare affordable for everyone in our state and to eliminate medical debt."
Oct 24, 2024
Mainers For Working Families, an advocacy group, announced on Thursday that it had partnered with a larger nonprofit to relieve $1.85 million worth of medical debt for 1,508 low-income people who live in Maine.
MFWF furnished a donation of $12,740 to Undue Medical Debt, a 501(c)(3) group formed by former collections executives, which bought the $1.85 million in debts; such debt is sold at pennies on the dollar.
The recipients, spread all over Maine, were people who live four times below the Federal Poverty Level or for whom medical debt totals more than 5% of their annual income.
"We can't turn back the clock for these people, but we had to do something," Evan LeBrun, MFWF's executive director, said in a statement.
"This is just a drop in the bucket," he added. "Now, it's up to our lawmakers to make healthcare affordable for everyone in our state and to eliminate medical debt."
BREAKING: Mainers for Working Families is partnering with @unduemeddebt to purchase and forgive $1.8 million in medical debt for over 1,500 Mainers across the state. pic.twitter.com/gkf4QELoiA
— Mainers For Working Families (@ForMainers) October 24, 2024
MFWF has worked on healthcare affordability issues since 2021 and medical debt since last year, a representative told Common Dreams. The group recently released a series of videos on the topic based on interviews conducted around Maine.
Undue Medical Debt formed in 2014 following inspiration from debt cancellation projects undertaken by Occupy Wall Street participants, including activist-intellectuals such as Astra Taylor and David Graeber. The nonprofit, which drew donor attention after it was featured by comedian John Oliver on his HBO show in 2016, has now canceled nearly $15 billion in medical debt, according to its website. Oliver himself made a contribution to the group, which was previously known as R.I.P. Medical Debt.
Nationwide, nearly 100 million people are dealing with unpaid medical bills, according to federal data.
The push for change in the field of medical debt has yielded a series of small victories. Last year, the three major consumer report agencies—Equifax, Experian, and TransUnion—stopped including medical debts below $500 on their credit reports, according to the Consumer Financial Protection Bureau. In June, the CFPB moved to ban all medical debt from credit reports, drawing praise from progressives such as Sen. Bernie Sanders (I-Vt.).
Vice President Kamala Harris, the Democratic presidential nominee, has pushed medical debt cancellation in her current role and pledged, as part of her economic agenda, to work with states to states to cancel more debt if she wins in November.
A working paper published by the National Bureau of Economic Research in April called into question the premise of Undue's work, finding that recipients of debt relief had no better credit scores or mental health than a control group. A co-author said the results had "disappointed" the researchers.
However, research has shown strong benefits to other forms of debt relief, and a 2023 survey conducted by Undue and other groups did show that medical debt negatively affected mental health for most people and caused 42% to delay further medical care.
Medical debt disproportionately affects people who are poor, Black, or disabled, according to Peterson-KFF Health System Tracker. About 3 million Americans have more than $10,000 in medical debt.
One is a woman named Kim, a resident of Old Town, Maine, whom MFWF interviewed in a recent video. She lives off of $26,200 per year and has roughly $2 million in debt, thanks to her fight with Addison's disease, a chronic endocrine disorder.
"I am really hoping that someone sees what is actually happening out there," she said. "God, I hope so."
Efforts to address the issue at the Maine state level have achieved mixed success. A modest reform bill that prevents debt accrual on medical debt did pass in Augusta in April.
Keep ReadingShow Less
US Healthcare Failures Prove 'We Need' Medicare for All, Says Jayapal
"This for-profit system leads to higher rates of death and disease and lower life expectancies—all while Americans spend more and more trying to get the care they need."
Sep 20, 2024
Congresswoman Pramila Jayapal on Thursday night responded to a new analysis exposing the failures of the for-profit U.S. healthcare system by renewing her call for Medicare for All.
Jayapal (D-Wash.) and Sen. Bernie Sanders (I-Vt.) are the lead sponsors of the Medicare for All Act. When they reintroduced the bill last year, they highlighted research showing that it could save 68,000 lives and $650 billion per year.
The Commonwealth Fund report—titled Mirror, Mirror 2024: A Portrait of the Failing U.S. Health System and released Thursday—adds to the mountain of evidence that, as Jayapal said in a series of social media posts, "our healthcare is broken."
Noting that "41% of Americans hold medical debt" and "millions are uninsured," the Congressional Progressive Caucus chair declared that "we need universal, single-payer healthcare: Medicare for All."
"America's healthcare system is in dire need of an overhaul. It is largely run by private insurance companies who only care about increasing their profits and limiting choices for consumers."
As Common Dreamsreported, the latest Commonwealth Fund analysis focuses on 70 health system performance measures in Australia, Canada, France, Germany, the Netherlands, New Zealand, Sweden, Switzerland, the United Kingdom, and the United States.
"All the countries have strengths and weaknesses, ranking high on some dimensions and lower on others," the report states. "Nevertheless, in the aggregate, the nine nations we examined are more alike than different with respect to their higher and lower performance in various domains. But there is one glaring exception—the U.S."
Jayapal made her case for Medicare for All with some details from the report, pointing out that "despite spending more, the U.S. ranked last in equity, access to care, and health outcomes—including acute illnesses, chronic diseases, and death. Of the countries studied, Americans live the shortest lives and face the most avoidable deaths."
"This is wholly unacceptable," she argued. "America's healthcare system is in dire need of an overhaul. It is largely run by private insurance companies who only care about increasing their profits and limiting choices for consumers."
"They refuse to pay for certain doctors, even as the average American spends tens of thousands of dollars every year on copays, deductibles, and private insurance premiums," she said. "Sometimes, they even have their own doctors override decisions about what you need for your own healthcare."
The congresswoman continued:
Medical debt and exorbitant costs regularly keep people from seeking necessary care, with a growing population of "underinsured" Americans—those who have health insurance but still aren't getting the care they desperately need.
This for-profit system leads to higher rates of death and disease and lower life expectancies—all while Americans spend more and more trying to get the care they need. In the richest nation on the planet, this simply should not and cannot be the case.
We need a system with comprehensive care for all, regardless of employment status, with no copays, deductibles, or private insurance premiums. A system where the [government] provides your insurance and doesn't allow private companies to override what your own doctor says you need.
We need comprehensive and improved Medicare for All that covers mental health, long-term care, reproductive care, dental, vision, and hearing. No hidden fees, no premiums, no copays, no deductibles. Just healthcare—when you need it, where you need it, so you can stay healthy.
"I'm so proud to be the lead sponsor of the Medicare for All Act, and I won't stop fighting until everyone can get quality healthcare without having to worry about what it might cost. Thank you so much to the 100+ members who have cosponsored our bill, H.R. 3421!" she added. "It's time for a healthcare system that actually works. Let's get Medicare for All done."
The bill, which has 14 co-sponsors in the Senate, has no chance of advancing in the current Congress and would likely face difficulty in the next one, even if Democrats won both chambers in the November election. Republican former President Donald Trump spent his first term attacking the U.S. healthcare system, while Democratic Vice President Kamala Harris has dropped her support for Medicare for All, saying recently that she wants to "maintain and grow the Affordable Care Act."
Still, patients, providers, and progressive lawmakers continue to demand a transition to a public system that serves all Americans—and Jayapal wasn't alone in pointing to the Commonwealth report as proof of the need for a major overhaul.
The other nine nations analyzed "have found [ways] to meet residents' basic healthcare needs, including universal coverage," University of California Health executive vice president Dr. Carrie L. Byington stressed on social media.
"The only clear outlier is the [United States], where health system performance is dramatically lower," Byington added. "Americans deserve better. #HealthcareForAll."
Keep ReadingShow Less
What Harris' Bid to End Medical Debt Tells Us About Her View of Corporate Price Gouging
For-profit hospitals jacking up prices matches a similar story of predatory corporate practices on grocery costs and housing prices. It's not market supply and demand. Corporate giants have figured out how to rip people off more effectively.
Aug 17, 2024
Vice President Kamala Harris’ bold proposal to eliminate medical debt offers a window into the approach that informs the entire progressive economic agenda the Democratic nominee for President unveiled August 16.
In addition to the proposals for re-instating and expanding the child tax credit with a baby bonus for new parents, federal support for affordable housing construction and a subsidy down payment for first time home buyers, much of the new focus and attacks have centered on what the Washington Post labeled the “first ever” ban on price gouging for groceries and food.
What makes that idea especially noteworthy is its correlation to the medical debt plan and caps on prescription drug costs and rent increases. A central cause of those inflated costs goes well beyond the usual claims of supply chain bottlenecks, government spending on social programs, and the disruption of the pandemic. In every case, there is a direct link to monopolization and big corporations exploiting those factors to jack up charges to extract higher, often record, profits, well beyond their own costs to produce or provide them.
Unpacking the crisis and main source of medical debt as well as for health care costs overall, including for prescription drugs, provides the tell.
For over two decades California Nurses Association/National Nurses United researchers have studied how hospitals inflate charges over their costs. Overall, the conclusion has been that hospital profit taking, augmented by corporate mergers, is a clear driver of medical debt.
A 2020 NNU study found that some hospitals had hiked their charges by as much as 18 times over their costs, exploding profits by 411 percent over the prior two decades. NNU’s forthcoming update on hospital charges will show that some hospitals by 2022/2023 were now setting charges at almost 24 times over their costs, doubling their charges over the past 20 years. Further, the biggest for-profit hospital chains set the highest prices and make the most profits from them. Among the 100 top hospitals with the highest charges, hospital giant HCA had six hospitals alone with a combined profit of almost $400 million for that fiscal year.
Big Pharma is the gold medal winner in profiteering which is why drug costs have become such a national scandal. The U.S. Senate Health, Education, Labor, and Pensions (HELP) Committee, chaired by Sen. Bernie Sanders, issued a Majority Staff Report in February documenting how three of the biggest pharmaceutical giants, Johnson & Johnson (J&J), Merck, and Bristol Myers Squibb (BMS), have prioritized profits over patient need, collectively piling up $112 billion in profits in 2022 through “unethical pricing strategies, relentless price hikes, manipulative patent tactics, and extensive lobbying efforts.”
That lobbying blocked years of efforts to allow Medicare to use its bulk purchasing power to negotiate lower drug prices, as most other industrial countries have achieved. It’s why President Biden’s Inflation Reduction Act to permit Medicare to bargain lower prices for 10 of the highest cost drugs that treat heart disease, cancer, diabetes, and blood clots was such a dramatic success. The White House this week announced it will save millions of Medicare recipients $1.5 billion in the first year of the program.
Grocery and housing prices
There’s a similar story of predatory corporate practices on grocery and housing prices. No they’re not just set by market supply and demand. “Is Harris right on the economics?” asked political economist Robert Kuttner on Friday in response to the announcement of Harris' plan.
"A detailed study by Groundwork Collaborative found that corporate concentration and increased profits accounted for more than half of the inflation felt by consumers in 2022 and 2023," Kuttner wrote. "First, it vividly connects with the issue of inflation where ordinary people feel it… Second, the plan reframes the issue … to how corporate concentration opportunistically drives price hikes…Third, the approach recasts the struggle as ordinary people vs. predatory corporations.”
“Today, everywhere consumers turn, whether they are shopping for groceries at the local Kroger or for plane tickets online, they are being gouged,” wrote David Dayan and Lindsay Owens in the lead to a major American Prospect series in June. “Landlords are quietly utilizing new software to band together and raise rents.”
In the “40 years from 1979 to 2019, nonfinancial corporate profits cumulatively drove about 11.4 percent of price growth. From April to September of last year,” Dayan and Owens continued, “that number was 53 percent.” Factors include corporate concentration, high-tech pricing practices, utilizing “technological innovations such as cloud computing, artificial intelligence, and surveillance targeting” of consumers to collect extensive personal information.
Jarod Facundo described a panoply of corporate grocery pricing practices including dominance of shelf space by the biggest chains, surge pricing, repackaging goods without changing prices, and tech driven personalizing pricing “for each shopping cart” that have been “the path to higher margins,” increased costs, and, of course, bigger profits.
Food company profit increases since inflation peaked, notes former labor secretary Robert Reich, include Cal-Maine, the largest U.S. producer and distributor of fresh shell eggs, whose profits soared 471 percent. Monopolization has also driven food inflation, Reich says: Just four companies control 85 percent of beef processing, 80 percent of corn seed distribution, 77 percent of fertilizer production, and 69 percent of grocery sales.
In an investigative report in October, 2022, ProPublica’s Heather Vogell described how Texas-based RealPage’s software facilitated price inflation on rental units. “Property managers across the United States have gushed about how the company’s algorithm boosts profits,” she wrote. “The nation’s largest property management company, Greystar, used the software to price tens of thousands of apartments.”
In the American Prospect, Luke Goldstein also zeroed in on the effect of RealPage’s practices to “maximize profits” in rental markets. “Clients accept the RealPage recommendations over 80 percent of the time, and the company includes provisions in its contracts to ensure rent hikes. It heavily pushes adoption to new clients of an ‘auto-accept’ feature that forces price increases automatically.”
Corporate price gouging has not gone unnoticed by the Biden administration, as Dayen and Owens note, citing the work of its agencies to aggressively target algorithmic price-fixing, corporate mergers and other practices, such as junk fees and corporate care interest rates that spark inflation.
Harris has been a voice on those initiatives as well, which have contributed to her economic proposals today. The proposals will face considerable assault from corporate lobbyists and the politicians they influence, of course, which will require a lot of political organizing to support.
Among those praising her initiative was Sen. Sanders, as staff writer Jake Johnson reported Friday for Common Dreams. Sanders called the Harris plan “an important step forward in making our country a fairer and more just society. I look forward to working with Vice President Harris when she becomes president to implement her economic agenda, and more, within her first 100 days in office."
Keep ReadingShow Less
Most Popular