"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."
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.
Read at Fortune
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