CFPB’s Focus on Healthcare Payments and Consumer Impact: A Closer Look
The Consumer Financial Protection Bureau (CFPB) is ramping up its focus on healthcare payments, potentially making it harder for some consumers to access necessary care. According to a recent PYMNTS Intelligence report, 21% of consumers faced difficulties when paying for healthcare, with 16% reporting that insurance covered less than expected.
Certain demographics, such as women, may be particularly vulnerable to the impact of limited payment options. The 2024 Women’s Wellness Index revealed that medical bills are a significant source of financial distress for 23% of women struggling to pay monthly expenses. Additionally, financial constraints are seen as a challenge to personal health and well-being, with mothers spending less on their own health compared to their partners.
The CFPB’s scrutiny on medical debt, cards, and alternative payments comes as 46% of patients cancel healthcare appointments due to high costs. Embedded finance solutions are gaining traction, with 25% of healthcare firms considering offering embedded finance options and millennials and paycheck-to-paycheck consumers using these plans to manage bills.
The CFPB recently reviewed medical payment products, including medical credit cards, and identified consumer complaints related to deferred interest and misleading marketing practices. The bureau will continue to monitor financial services companies’ oversight of medical providers and marketing materials.
Recent efforts by the CFPB to remove medical debt from credit reports and cap card late fees have been well-received by the public. However, these changes could have unintended consequences, such as providers ceasing to offer financing options to patients. The CFPB’s actions may lead to new rules governing how healthcare providers and financial institutions can market payment options to patients.
