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The White House is seeking to help lessen Americans’ medical debt burden, Vice President Kamala Harris announced Monday. In its latest effort to help people deal with increased costs amid skyrocketing inflation, the White House laid out a four-point plan to help protect consumers. It builds on President Joe Biden’s recent executive order on increasing access to affordable health care coverage. (Luhby, 4/11)

The administration is asking federal agencies to erase medical debt as an underwriting factor in credit programs for certain consumer and small businesses whenever possible, the White House said Monday. For example, the rural housing loans that run through the U.S. Department of Agriculture are going to stop incorporating medical debt loads when devising borrower repayment plans, the White House said. Meanwhile, the Department of Veteran Affairs is looking at its guidelines after taking other steps to curb medical debt reporting. The Small Business Administration is reviewing its lending programs to spot ways to pull medical debt out of the equation when it comes to accessing capital, the White House said. (Keshner, 4/11)

Vice President Kamala Harris announced new steps designed to reduce the cost of federal home loans for Americans saddled with medical debt and make it easier for veterans to have health care bills forgiven during an event Monday at the White House. “I have met so many people in so many communities in our nation who are struggling with this burden, many of whom are managing an illness or an injury at the same time, and who stay up at night staring at the ceiling, wondering if they will ever be able to pay off their medical debt,” Harris said. “No one in our nation should have to endure that.” (Sink and Cook, 4/11)

The federal government will be taking action against “bad actors” who break the law when attempting to collect medical debt, Vice President Kamala Harris said on Monday. “Our administration is also taking action against the bad actors. The folks who violate consumers rights to force people to pay medical debt,” Harris said during a speech announcing the new action to be taken by the Consumer Finance and Protection Bureau. (4/11)

But an increasing number of insured Americans can't afford deductibles, copayments or other out-of-pocket costs that are rising with the underlying cost of care. More than 40% of households don't have enough liquid assets to pay typical private plan cost-sharing, according to a recent KFF analysis. Taking some of the bite out of medical debt doesn't prevent it from accruing in the first place, and it could have unintended consequences. "Policymakers should be cognizant of potential unintended consequences that could undermine some of their goals. Lenders may find ways to proxy for the hidden medical debt or try to avoid consumers likely to have them," said the American Enterprise Institute's Ben Ippolito. (Owens, 4/12)

The Health and Human Services Department will soon request data from more than 2,000 providers related to medical debt, the White House announced Monday. Providers may be asked to submit information on their medical bill collection practices, lawsuits against patients, financial assistance, financial product offerings and third-party contracting or debt-buying practices. HHS will use the information when making grantmaking decisions. The department also will make some of the data public and share potential violations with enforcement agencies. (Goldman, 4/11)