Civilians treated at military hospitals are subject to aggressive collection tactics, even if they are uninsured or low-income, according to a report from the Center for Public Integrity and The Atlantic.
Four things to know from the report:
1. While nonprofit and private hospitals are subject to federal and state charity-care laws when it comes to collecting medical debt from uninsured or poor patients, military hospitals don't have to follow charity-care laws. Although the government can write off some debts, military hospitals are required to take "prompt and aggressive action" to settle any debts, according to Department of Defense regulations cited in the report.
2. Aggressive debt collection became a priority at military hospitals after the Department of Defense's inspector general found the hospitals weren't sufficiently collecting outstanding debt. A series of audits, the first published in 2014, found five military health facilities mishandled millions in delinquent accounts. In total, civilians today owe about $198 million to military hospitals for treatment.
3. The federal government can begin using aggressive collection tactics once military hospital debt is transferred to the U.S. Treasury. These include withholding wages, tax refunds or 15 percent of a person's Social Security income without a court order, according to the report. The outstanding balances can also incur interest payments, administrative fees and other penalties.
4. In a statement to the Center for Public Integrity and The Atlantic, the Treasury Department's Bureau of the Fiscal Service said while it is "required by law to collect debts, [it] works to ensure that debtors are treated fairly and receive proper notices and opportunities to dispute the debts, as well as the chance to repay debts over time."
For the full report, click here.
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