A big change is coming for debt collections. FICO has announced that its newest scoring model, FICO 9, will disregard paid collection agency accounts and will place a lower weight on medical debt. Under the new score, those consumers with only medical debt on their records are expected to see an average score increase of about 25 points.
It’s no secret that the healthcare reform is changing the way medical providers operate. Patient responsibility is higher than ever, and consumers are having a difficult time understanding their new policies. This leads to higher patient balances, which often go unpaid. In addition, with co-pays, deductibles and co-insurances on the rise, patients are beginning to shop around for care. In order to compete, the emphasis in medical practices must shift from volume to value.