As judge ordered medical debt to stay on credit reports, Americans face financial stress

Category: Top Stories

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. nonprofit / nɑnˈprɑf ɪt / (n.) – an organization, such as a charity, that is not made to earn money for itself
    Example:

    She works for a nonprofit that gives free meals to homeless families.


  2. conduct / kənˈdʌkt / (v.) – to plan, organize, and perform an activity or task
    Example:

    The team conducted a survey to learn about people’s food choices.


  3. inclusion / ɪnˈklu ʒən / (n.) – the act of making someone or something part of a group, list, or activity
    Example:

    The inclusion of exercise in the school program has helped students stay healthy.


  4. bankruptcy / ˈbæŋk rʌpt si / (n.) – a situation in which a person or company cannot pay their debts and is officially said to be unable to do so
    Example:

    After losing his job and having no income, he was close to bankruptcy.


  5. unmanageable / ˌʌnˈmæn ə dʒə bəl / (adj.) – too difficult to control, deal with, or handle
    Example:

    Her debt grew to an unmanageable amount after she lost her job.


Article

Read the text below.

“I have been receiving medical bills my whole life,” said Leroy Brown, a 61-year-old part-time worker at a local nonprofit in Indianapolis that helps people in prison.


Brown said he was diagnosed with diabetes in 1997, a condition that requires regular doctor visits. He also underwent knee surgery after a workplace accident.


These medical conditions have left him with a debt of $40,000, which is the amount not covered by his health insurance.


About 41 percent of American adults have some form of medical debt, according to a 2022 survey, the most recent healthcare debt research conducted by Kaiser Family Foundation (KFF), a nonprofit organization focused on health policy.


“Medical debt is fundamentally different from other kinds of consumer debt because it’s debt that consumers don’t choose,” said Helen Colby, an Indiana University professor who researches consumer financial and health decision-making.


In early January, the Biden administration introduced a federal rule barring medical debt from being included in credit reports. But on July 11, a federal judge in Texas struck down the rule, saying it exceeded the Consumer Financial Protection Bureau’s authority.


Colby said the inclusion of medical debt in credit reports will make it more difficult for people to find apartments, buy cars, and get jobs.


Brown said he retired from a 30-year career in hospital transportation and now receives disability benefits. With the help of a lawyer, he filed for bankruptcy last month because the debt had become unmanageable.


“I am tired, and I’m getting older,” he said. “I don’t need anything at this age stressing me out.”


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Leroy Brown had health insurance, but it didn’t cover all the costs of his care. He still has $40,000 in medical debt. What do you think about a health insurance plan that doesn’t cover the full cost of a person’s medical care? What would you do if your insurance didn’t cover a needed medical bill? Discuss.
  • Do you think government health insurance plans in your country already help a lot, or do they still need to improve? Why do you say so? Discuss.

Discussion B

  • Brown’s medical conditions made it difficult for him to keep working full-time, but he still has $40,000 in medical debt to pay. Do you think people who can’t work full-time because of their health should still be expected to pay their debts the same way as others? Why or why not? Discuss.
  • If you were a business owner, what kind of support would you give to your staff who can’t work full-time because of long-term health issues? Do you think providing that support would be easy or challenging? Why do you say so? Discuss.