A review of 1,200 Colorado court cases over a two-year period found judges permitted wage garnishments for unpaid bills, with at least 30% tied to medical care even when Medicaid should have covered costs. Medical debts pursued ranged from under $30 to over $30,000, with most under $2,400. Interest and court fees commonly increased owed amounts by about 25%, and some debts ballooned far more. Cases followed people for years, sometimes more than a decade, and collectors revived claims as individuals moved or changed jobs, placing added strain on low-income and vulnerable households.
"Stacey Knoll thought the court summons she received was a scam. She didn't remember getting any medical bills from Montrose Regional Health, a nonprofit hospital, after a 2020 emergency room visit. So she was shocked when, three years after the trip to the hospital, her employer received court orders requiring it to start funneling a chunk of her paychecks to a debt collector for an unpaid $881 medical bill - which had grown to $1,155.26 from interest and court fees. The timing was terrible. After leaving a bad marriage and staying in a shelter, she had just gotten full custody of her three children, steady housing in Montrose, Colorado, and a job at a gas station."
"At least 30% of the cases stemmed from medical care - even when patients' bills should have been covered by Medicaid, the public insurance program for those with low incomes or disabilities. That 30% is likely an underestimate since medical debt is often hidden behind other types of debt, such as from credit cards or payday loans."
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]