There have been widespread employee layoffs across the federal government and talk about doing away with some federal agencies completely. Among these is the Consumer Financial Protection Bureau (CFPB).
If the CFPB is gutted, many current and pending regulations to help protect Americans from overwhelming debt could be at risk. Among these is the rule approved under the Biden administration that would keep medical debt off people’s credit reports. This rule could help prevent an unexpected and costly medical event from harming someone’s chances of getting housing, needed loans or even employment. This rule was scheduled to take effect in March. Now it seems doubtful that it will be enforced.
What is the HASP program?
Fortunately for North Carolina residents, the state’s Department of Health and Human Services (DHS) has received approval from the Centers of Medicare and Medicaid Services (CMS) to continue its Healthcare Access and Stabilization Program (HASP) for another year.
The program provides incentives for hospitals to erase or decrease medical debt for low- and middle-income people. The program’s goal is to erase around $4 billion in accumulated medical debt for nearly 2 million North Carolinians.
The medical debt relief initiative requires hospitals to erase debt that they’ve determined cannot be collected and provide financial assistance programs for low-income North Carolinians in exchange for receiving higher Medicaid reimbursements. It’s the first program of its kind in the U.S. While participation by hospitals isn’t mandatory, all of the state’s acute care hospitals are participating.
A “healthier North Carolina for every person”
North Carolina Gov. Josh Stein has said that this program, now in its third year, helps “create a stronger health care system and healthier North Carolina for every person.” The state’s Health and Human Services Secretary Dev Sangvai has said the program lets North Carolinians “receive the care they need without fear of costly medical debt while supporting financial sustainability for hospitals.”
Medical debt is a leading cause of bankruptcy, so this program has and will – at least for the foreseeable future – allow some North Carolinians to avoid bankruptcy. However, overwhelming debt of any kind can still plague many people throughout the state. Seeking legal guidance can people determine the best way to get back on sound financial footing.
