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Why Hospitals Want Your Credit Report
Key Excerpts from Article on Website of Wall Street Journal
Posted: March 27th, 2008
http://online.wsj.com/article/SB120580305267343947.html
In a development that consumer groups say raises privacy issues, a growing number of hospitals are mining patients' personal financial information to figure out how likely they are to pay their bills. Some hospitals are peering into patients' credit reports, which contain information on people's lines of credit, debts and payment histories. Other hospitals are contracting with outside services that predict a patient's income and whether he or she is likely to walk away from a medical bill. Hospitals often use these services when patients are uninsured or have big out-of-pocket costs despite having health insurance. Consumer advocates say the practice creates the potential for hospitals to misuse the information by denying or cutting back on patients' care if they can't pay. What's more, hospitals could scour a patient's financial records for credit lines and encourage the patient to tap them, despite high interest rates or other costs. "It has the potential to put people at risk financially," says Mark Rukavina, executive director of the Access Project, a research and advocacy group that focuses on medical debt. The Health Insurance Portability and Accountability Act, or Hipaa, a federal law that has patient-privacy provisions, doesn't bar hospitals from providing patient payment histories to consumer reporting agencies. It's unclear how much latitude hospitals have to legally check a patient's financial information. Under the Fair Credit Reporting Act, hospitals are allowed to obtain patients' credit reports if they get their permission, says Rebecca Kuehn, an assistant director in the Federal Trade Commission's division of privacy and identity protection.
Note: For many other revelations of privacy abuses from reliable, verifiable sources, click here.
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