Comment It's healthcare debt, stupid (Score 1) 570
Anyone have other theories why this number is so much higher than the 5% of people who are just "late"?
The insurance industry - who received the greatest corporate handout in the form of the "health care bill" in 2010 in the history of the world - has an exceptional racket here. They have the ability to not only delay payments in "processing" for so long that they automatically go to collections by the time they decide not to pay, they can also undo payments after the fact for any reason.
Don't believe me? I had exactly that happen to me when I was a college student. The insurance I had (through my parents) decided over a month after paying my doctor's office that they wanted to un-pay it, so they did. By the time they took their money back the debt was considered overdue (relative to the date of service). I knew nothing of this until I started getting debt collections calls from various bad actors at 3am under assumed celebrity names. They threatened to garnish everything imaginable and impound my measly car (which was not worth anywhere near the debt) to seek payment.
I eventually got through to the insurance company directly and got them to go back and re-pay the un-paid bills. They never apologized for their little experiment or gave a reason why they chose me. Even better I had to promise to never, ever, use that insurance policy again in exchange.
Thanks a lot blue cross-blue shield. I hope your CEOs enjoyed the additional cruise amenities that they got in reward for destroying my credit.