Now, more than ever, physicians are struggling to be fairly reimbursed for the care they provide. This issue can be attributed to an increased financial burden on patients, coupled with policies by credit bureaus and state regulations that reduce patients’ responsibility for medical bills, effectively disincentivizing the payment of medical debt.  

One key factor is the increasing popularity of high deductible health plans (HDHPs). These plans, while intended as cost-containment strategies, shift the financial burden onto beneficiaries in the form of out-of-pocket costs. In 1970, the out-of-pocket cost per person was only $115 (“or, adjusted for inflation, $677”). However, as of 2022, out-of-pocket spending has reached $1,425 per person.  

In August 2022, the three major credit bureaus, Equifax, Experian, and TransUnion announced that unpaid medical debt under $500 would not appear on consumer credit reports after April 2023. This policy disincentivizes patients from paying medical bills less than $500. Additionally, states are enacting their own medical debt repayment laws, with some states having stricter laws than others that protect patients from large bills.  

The combination of out-of-pocket payments, state regulations on medical debt, and the decision by credit bureaus not to include medical debt under $500 in credit reports have substantially decreased physician compensation. Physicians are seeing annual decreases in their reimbursement from all parties. To learn more about the state of physician reimbursement and the challenges facing physicians and patients, tune in to our latest episode of Zotec Answers and read our recent white paper.