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Reviewed by Emily Henderson, B.Sc. May 4 2023

The Biden administration on Thursday cautioned Americans about the growing risks of medical credit cards and other loans for medical bills, warning in a new report that high interest rates can deepen patients' debts and threaten their financial security.

In its report, the Consumer Financial Protection Bureau estimated that people in the U.S. paid $1 billion in deferred interest on medical credit cards and other medical financing in just three years, from 2018 to 2020.

The interest payments can inflate medical bills by almost 25%, the agency found by analyzing financial data that lenders submitted to regulators.

"Lending outfits are designing costly loan products to peddle to patients looking to make ends meet on their medical bills," said Rohit Chopra, director of CFPB, the federal consumer watchdog. "These new forms of medical debt can create financial ruin for individuals who get sick."

Nationwide, about 100 million people — including 41% of adults — have some kind of health care debt, KFF Health News found in an investigation conducted with NPR to explore the scale and impact of the nation's medical debt crisis.

The vast scope of the problem is feeding a multibillion-dollar patient financing business, with private equity and big banks looking to cash in when patients and their families can't pay for care, KFF Health News and NPR found. In the patient financing industry, profit margins top 29%, according to research firm IBISWorld, or seven times what is considered a solid hospital profit margin.

Millions of patients sign up for credit cards, such as CareCredit offered by Synchrony Bank. These cards are often marketed in the waiting rooms of physicians' and dentists' offices to help people with their bills.

The cards typically offer a promotional period during which patients pay no interest, but if patients miss a payment or can't pay off the loan during the promotional period, they can face interest rates that reach as high as 27%, according to the CFPB.

Patients are also increasingly being routed by hospitals and other providers into loans administered by financing companies such as AccessOne. These loans, which often replace no-interest installment plans that hospitals once commonly offered, can add hundreds or thousands of dollars in interest to the debts patients owe.

A KFF Health News analysis of public records from UNC Health, North Carolina's public university medical system, found that after AccessOne began administering payment plans for the system's patients, the share paying interest on their bills jumped from 9% to 46%. Related StoriesUniversity Hospital Bonn coordinates eWHORM project to combat worm infections in sub-Saharan AfricaMGI and South Australian Genomics Centre Introduce DNBSEQ-T7 to Supercharge Genomics Research in AustraliaPediatric hepatology experts join Hassenfeld Children's Hospital to deliver family-centered care to children with liver disease

Hospital and finance industry officials insist they take care to educate patients about the risks of taking out loans with interest rates.

But federal regulators have found that many patients remain confused about the terms of the loans. In 2013, the CFPB ordered CareCredit to create a $34.1 million reimbursement fund for consumers the agency said had been victims of "deceptive credit card enrollment tactics."

The new CFPB report does not recommend new sanctions against lenders. Regulators cautioned, however, that the system still traps many patients in damaging financing arrangements. "Patients appear not to fully understand the terms of the products and sometimes end up with credit they are unable to afford," the agency said.

The risks are particularly high for lower-income borrowers and those with poor credit.

Regulators found, for example, that about a quarter of people with a low credit score who signed up for a deferred-interest medical loan were unable to pay it off before interest rates jumped. By contrast, just 10% of borrowers with excellent credit failed to avoid the high interest rates.

The CFPB warned that the growth of patient financing products poses yet another risk to low-income patients, saying they should be offered financial assistance with large medical bills but instead are being routed into credit cards or loans that pile interest on top of medical bills they can't afford.

"Consumer complaints to the CFPB suggest that, rather than benefiting consumers, as claimed by the companies offering these products, these products in fact may cause confusion and hardship," the report concluded. "Many people would be better off without these products."

This article was reprinted from khn.org with permission from the Henry J. Kaiser Family Foundation. Kaiser Health News, an editorially independent news service, is a program of the Kaiser Family Foundation, a nonpartisan health care policy research organization unaffiliated with Kaiser Permanente.

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Follow live: Cubs aim to force Game 5 vs. Brewers

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Dodgers advance to NLCS after Kerkering’s error

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Dodgers advance to NLCS after Kerkering's error

LOS ANGELES — Orion Kerkering made a wild throw past home instead of tossing to first after mishandling Andy Pages‘ bases-loaded comebacker with two outs in the 11th inning, and the Los Angeles Dodgers beat the Philadelphia Phillies 2-1 Thursday to win their NL Division Series 3-1.

Kerkering hung his head and put hands on knees after his throw sailed past catcher J.T. Realmuto as pinch-runner Hyeseong Kim crossed the plate, advancing the Dodgers to the NL Championship Series against the Chicago Cubs or Milwaukee.

Realmuto had pointed to first when the broken-bat, two-hopper hit off Kerkering’s glove and rolled just in front of the mound.

Kerkering picked up the ball and in one motion made a sidearm throw, 46 feet from the plate. The ball sailed up the third-base line, past Realmuto’s outstretched mitt, and fans in the crowd of 50,563 at Dodger Stadium erupted after spending the final three innings on their feet.

“It’s brutal,” Dodgers manager Dave Roberts said. “It’s one of those things that it’s a PFP, a pitcher’s fielding practice. He’s done it a thousand times. And right there he was so focused, I’m sure, on just getting the hitter and just sort of forgot the outs and the situation.”

Phillies manager Rob Thomson wrapped an arm around Kerkering when the distraught reliever reached the dugout.

“He just got caught up in the moment a little bit,” Thomson said. “I feel for him because he’s putting it all on his shoulders.”

This was the second postseason series to end on a walk-off error, according to the Elias Sports Bureau. A wild relay throw by Texas second baseman Rougned Odor on a potential double-play grounder allowed Josh Donaldson to score and give Toronto a 7-6, 10-inning win and a three-game sweep of their 2016 AL Division Series.

Los Angeles ended a postseason series with a walk-off win for the third time after Bill Russell’s single against the Phillies in Game 4 of the 1978 NLCS and Chris Taylor‘s homer in the 2021 NL wild card game.

Nick Castellanos‘ RBI double in the seventh off Emmet Sheehan had put the Phillies ahead but Jhoan Duran walked Mookie Betts with the bases loaded in the bottom half, forcing in the tying run.

Tommy Edman singled off Jesús Luzardo with one out in the 11th and took third on Max Muncy‘s two-out single that eluded diving shortstop Trea Turner.

Kerkering walked Enrique Hernández, loading the bases. Pages, in a 1-for-23 postseason slide, hit what appeared to be a routine grounder, the type every pitcher practices gloving from spring training on.

Philadelphia, wearing its powder blue throwback uniforms on the road for the second straight day, was knocked out in the Division Series for the third straight season while the defending World Series champion Dodgers reached the LCS for the eighth time in 13 years.

Dodgers rookie Roki Sasaki, averaging 99.5 mph his his fastball, threw three innings of hitless relief, combining with Tyler Glasnow, Sheehan and winner Alex Vesia on a four-hitter.

Glasnow allowed two hits and three walks in six innings with eight of the 12 strikeouts by Dodgers pitchers.

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Politics

Starmer’s found new enthusiasm for his digital ID project – but will he be able to sell it?

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Starmer's found new enthusiasm for his digital ID project - but will he be able to sell it?

One metric for the rise and fall of this government might end up being the progress of the rollout of digital ID.

The lack of a clear plan – despite the high profile announcement by the PM – means the destination still remains slightly opaque, and some cabinet ministers are sceptical.

However, the PM’s India trip suggests that there might just be a path to success, if things fall in Keir Starmer’s favour.

During his visit, Starmer met the boss of Infosys, Nandan Nilekani, who is behind the rollout of digital ID to more than 1.4 billion Indian citizens.

Afterwards, when I asked about it at the closing press conference of the India trip, he was infused by a fresh enthusiasm for the plan, not evident at the Labour gathering in Liverpool in the days after he first unveiled it.

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Digital ID cards for everyone?

Below is what he said to me, transcribed in full.

But as you read it, notice how the PM’s explanation and justification for this scheme – which will be one of the biggest projects this government undertakes if it does happen – centres around convenience for citizens and makes no mention of the case originally used for it – to combat illegal migration.

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Starmer told me: “We did discuss [digital ID] yesterday. And in particular, the benefits that it has brought in India.

“We’ve obviously also looked at other countries – Estonia, for example. The speed with which it allows citizens here to access services, particularly financial services, is something that was recognised in our discussions yesterday and actually at the fintech discussion that we had today, as well.

“So, we’re looking at those examples of how digital ID helps individuals, with the processes that sometimes take too long and are too cumbersome, and makes it easier for them.”

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Who opposes BritCard?

The answer is clear: the prime minister now puts personal convenience as the top justification.

While Starmer was locked in the Fintech summit, we visited Mumbai University to gauge opinion on digital ID, which has rolled out across India over the past 10 to 15 years.

We asked students as they could traditionally have been thought to be one of the more cautious groups in society towards a project which involves state intrusion into the lives of individuals.

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Sky’s Sam Coates reports from India

Among all the people that we talked to – and you can watch our video at the top of this page – there was a recognition of privacy concerns, worries about data leaks, and uncertainty about how some of the information might be used.

But every single person we stopped and talked to about it was nevertheless enthusiastically in favour – and said it had made their lives simpler and more efficient.

The net benefits of this scheme had landed with the Indian citizens we spoke to.

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Is this the end of digital privacy for UK citizens, or a tech solution to illegal immigration?

The engagement from Infosys is also significant after the boss of Palantir, a rival tech company, gave the idea of a UK digital ID scheme a comprehensive shellacking last week.

For a moment, it looked like the corporate world might be pulling back from the scheme – so the engagement of a massive multinational corporation has come at just the right moment.

None of which is to downplay the obstacles.

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Who is going to implement Labour’s new policy on digital ID cards?

In a bizarre move, the Home Office appears to have been allowed to swerve responsibility for the project, which has gone instead to Liz Kendall’s Department of Science, Innovation and Technology (DSIT), which does not yet have any track record of major delivery.

One DSIT aide said that the young average age of staff at the newly formed department is an advantage, a claim which seems somewhat doubtful.

So, Whitehall may tie itself up in knots over this project. Or, it might turn out that India’s cultural norms simply make it an easier place to roll out a scheme like this.

But on the basis of our enquiries, there is the potential case for a scheme that can be sold to a willing public.

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