Mellody Hobson is the president of Ariel Investments, a Chicago based money management firm as well as the featured consumer finance expert on Tom Joyner’s “Money Mondays,” among other roles. In today’s “Money Mondays” segment, Hobson gives tips on how to protect your credit when you have hefty medical bills you can’t pay right away. Listen to the audio and read the tips below!PLAY AUDIO
TOM JOYNER: You are here this morning to talk about medical bills and credit – but all bills impact your credit, doesn’t them?
MELLODY HOBSON: Of course they do Tom, but there are signs that medical bills are playing an out sized role in damaging the credit history of many Americans. So this morning, I want to talk about the problem, and steps to take to ensure that you are not falling victim to this new trend.
Tom: Why are healthcare or medical bills different?
Mellody: A big reason that medical bills are different is that there is no real standardization among the industry, and yet there are so many different touch points. Put more simply, there is no specific billing cycle. Take your credit card bill as an example: you are billed monthly, and you are expected to pay off your credit card within 30 days. This is not the case in the medical industry, as the costs – and the payments – are larger and multifaceted. Some billing systems may give you two months; others may put you on a payment plan. So this lack of standardization presents challenges.
But there is another piece of this story, too, and that is the information gap. When consumers receive bills from their doctors or from laboratories they have never heard of, they can be lists of tests run, acronyms for various processes, or they can be comprised of what can only be described as indecipherable medical terminology. We have all been there. Because of this, many consumers do not know what they are being charged for, or if their insurance covers this, so they simply ignore it.
So these two factors coupled together really seem to separate healthcare bills out from others in many people’s minds, so they are less likely to be routine, and therefore routinely paid.
Tom: And this leads to big credit problems?
Mellody: It really can, Tom. More and more, we are seeing signs that this fractured billing process and the confusion it creates is damaging the financial reputation of many Americans. Basically what is happening is that it in the time that it is taking consumers to figure out who owes what when – which can run into weeks and months – the medical debts that are behind can be reported rapidly to credit agencies, and often without any notice to the people who are responsible for the debt. And even small unpaid bills can severely damage credit ratings.
According to the New York Times, a mortgage initiator in Texas recently looked at the credit records of 5,000 applicants and found that 40 percent had medical debt in collection, with the average around $400. Forty percent! That is a very big number just for medical debt. Additionally, the new consumer financial protection bureau has noted that half of all accounts reported by collection agencies now come from medical bills, and the credit record of one in five Americans is affected. This means that these bills may prevent you from getting a car, leasing an apartment or even getting a mortgage. Those are certainly big credit problems.
Tom: What should our listeners do?
Mellody: The first thing that people should do is simply be looking out for these medical bills. After any medical visit that requires a procedure that is not routine, such as an annual checkup, make sure you are aware of what communications you should be receiving. Talk to the billing person at your office to get a clear understanding of where invoices will come from. Secondly, information is power. One of the problems with many procedures is that you don’t know what it will cost until after the fact, so make sure to learn as much as you can about the costs before you undergo any medical treatment. Afterwards, take the time to inquire with the entity that sends you each bill. Ask questions if you are unclear about any charges – both with the billing entity and with your insurance, and be prepared to contest any outrageous charges. Finally, create a schedule for payment that ensures these bills are paid on time. If you can’t afford this, work with the office or lab to create a payment schedule. The main point here is to know what you owe, know why you owe it, and make preparations so you are not missing payments that you were not aware of.
Tom: Is this a problem that regulators are trying to address?
Mellody: Both congress and the protection bureau have been trying to protect consumers’ credit scores through various proposals, including differentiating medical debt from other forms; erasing the missed payments once they have been paid off or simply not having medical debt reported to credit agencies at all, for example. So far, the efforts have been stalled as the credit industry has fought successfully against them, saying they could protect people with legitimately bad credit histories and debt issues. But it also has to do with their bottom line. Currently, health care bills comprise the single biggest source of business for collection companies, according to consumer protection agency officials. So for now, the best thing you can do is be informed about your healthcare expenses, make sure you are asking the questions, and be ready to pay those bills on time!
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100 Reasons Why I Can't Stop Looking At Blue Ivy
1. Mommy & Me
2. Blue. #May10 #NYC
3. Blue Ivy & Jay Z Sip Tea
Blue is surely the apple of Daddy's eye.
4. Blue Ivy & Beyonce Smell The Roses
Beyonce seems like the coolest mom.
5. Blue Ivy & Beyonce Soar The Big Skies
6. Blue Ivy & Mommy
7. Daddy & Me
Blue Ivy walks across mommy's at-home photoshoot, but it's the most adorable photobomb ever!
9. One Big Happy Family
The royal family, Bey, Jay & Blue are all out shopping and we're sure they spent our entire life's savings in 30 minutes or less.
10. Beyoncé, Jay Z & Blue in Beverly Hills — Nov. 11
Beyonce in these heels though?!
11. Beyoncé & Blue in NYC — Nov. 4
Look at Blue in her adorable little bow!
12. Beyoncé & Blue spotted in NYC — Nov. 4
Blue holding on to mommy for dear life.
13. Beyoncé & Blue spotted in NYC — Nov. 4
Momma Bey looking fierce with her mini me in tow.
14. Blue dressed as Michael Jackson.
15. Blue & Ivy
Just look at that face. Seriously, Jay could never deny this child! She knows how to make all his mean mugs!
16. Beyoncé, Jay Z & Blue in Beverly Hills — Nov. 11
Look at that cutie!
17. Beyoncé, Jay Z & Blue in Beverly Hills — Nov. 11
OMG Blue in a top knot? Yasss!
Blue has grown up to be an adorable toddler! We're swooning over this photo of her playing on the beach.
Looks like Blue is taking a walk in mom's shoes...literally.
20. Beyoncé & Blue
There's nothing like being cuddled up in mom's arms.
Blue is looking all kinds of adorable! Look at that left hand go! LOL.
22. Blue On The Big Screen
Bey & Jay look at Blue during a video played at an "On The Run" tour stop. How precious!
23. Pardon Blue's Back
She's growing up so fast! We're loving the top knot. Take that Blue Ivy hair critics!
24. Jump Around
Bey & Blue share an adorable moment on the trampoline. Hello summer!
25. Rocking Some Cute Ponytails
Blue Ivy was spotted with a new 'do! Bey & Jay's mini-me was holding on to her father during a little day stroll.
26. Strolling With Mom & Dad
Blue, Jay and Bey all spotted in East Hampton.
27. Blue Has A Manicure Day With Mama Bey
"Me and my Blue, and my Blue Blue, riding🐝"
28. Hanging Out With Mom
Baby Blue is walking to the door, and it looks like Bey is trying to keep up!
29. Trying On Some Heels
Will Blue be slaying a performance in the near future?
30. Holding On To Mom
Blue looks like she has something to say to Bey.
31. Playing A Game Of Tennis
Blue walks on the tennis court.
32. Cuddling With Mom
Blue & Beyonce have some much-needed cuddle time.
33. Blue Ivy
"The blueprint 🐝"
34. Bey & Blue Take A Stroll
Doesn't Blue look adorable with her colorful dress and cute hair ribbon?
35. The Carter Lounge Together
The family was seen out and about.
36. Jay Z Carries Blue While Bey Looks On
Jay carries Blue in his arms.
37. Leading The Way
Blue Ivy looks too cute with her bowler hat and Mama Bey watching from behind. She's really growing up!
38. Out On The Town
Blue Ivy & Momma Bey enjoy some much deserved time off in Spain.
39. Traveling With Mom and Dad
Blue is used to traveling with Mama Bey and Poppa Jay, but she also looked a little flustered at some moments. It's ok, baby Blue!
40. A Day At The Park
Poppa Jay Z lets Blue Ivy have her way with the bouncy horse.
41. It's A Family Affair
Beyonce, Jay and Blue jetsetting in Dublin.
Blue dressed up like a hipster and plays a quick game of peekaboo! How adorable!
43. OMG It's Blue's Beautiful Face!
FINALLY! We get to see how beautiful Blue is! Look at the adorable headband! "Blue 💙"
44. Blue Ivy
Life's a beach!
45. Brooklyn Stand Up!
"Beyonce & Blue"
46. Blue Ivy's Got Her Own iPhone
"Momma, what's your password?"
47. Beyonce's Lazy Day With Blue
"Momma, I asked you for your password!"
48. When Blue Ivy Takes Your Phone, Beyonce Be Like...
"Fine, I'll go ask Daddy!"
49. Blue Ivy On Tour
"Bey & Blue"
50. It's Playtime
Beyonce & Blue take some time out to play.
51. A Chilly Day In NYC
"Beyoncé, Jay Z and Blue Ivy in NYC - Jan. 19"
52. All Bundled Up
The royal family makes their way to their fancy car.
53. Kisses From Dad
Blue's all bundled up, getting love from Daddy.
54. Blue At The White House
Blue Ivy's taking after mommy and writing a letter.
55. Blue Loves Bo
The White House pup, Bo is showing Blue Ivy some love.
56. The Carters At The White House
Check out the royal family checking out the scene at the White House.
57. It's Christmas Time Again
Blue and Bey checking out the White House Christmas tree.
58. Blue Lovin' Bo
Blue Ivy, dressed like a Princess, showing Bo some love.
59. Like Father, Like Daughter
Blue playing dress up with Daddy's hat.
60. Fun Times With Mommy
Blue Ivy spends some QT with mommy.
61. Mommy & Me
Blue and Bey take a break for some snacks.
62. Silvery Blue
Beyonce carries Blue, while the adorable toddler rocks a metallic jacket that we want and need.
63. The Holy Grail
Blue, Bey & Jay
64. One Big Happy Family
"#miami #newyear #2014"
"Beyoncé & Blue 💙"
66. Blue & Daddy In A Blue Jacket
"Jay and Blue 💙 #NewYear #2014 #Miami"
67. Hold On To Me
"Happy New Year Mommy!"
68. Dora Dora Dora The Explorer
"Beyoncé, Blue and Dora the Explorer"
69. Daddy & Bey
"Look over there Blue, you own that too."
70. Blue's Big B-Day
"Mommy make sure they can only see the back of my head."
71. Painted Faces For Blue's Bday
"Let me get down Mommy, I wanna play!"
72. Kisses From Mommy
Beyonce and Blue prepping for Momma Tina's Masquerade Ball
73. Talk To The Hand!
Beyonce, Jay Z and Blue Ivy were spotted leaving Joey's restaurant in Miami, on January 8th, and Blue had a message for the paps! Talk to the hand!
74. Me & My Daddy
While Beyonce's arm rested, Jay carried Blue from Joey's restaurant, in Miami on January 8th.
75. Blue's First Words
"I'm ready to slay right along with you, Ma!"
76. Imagine The Sound Of This Lullaby
A newborn Blue Ivy gets serenaded by her superstar mother.
77. Don't Mess With Blue!
Every now and again, Blue Ivy reminds you...she is her father's child!
78. All Gold Everything
Blue Ivy takes after her dad's swag. The inseparable duo were spotted in South Beach, Miami illuminating the streets outside their hotel with their yellow luster!
79. All Of The Lights!
"Mommy! All the pretty colors are so blinding! I'm...just..so..overwhelmed! When's my shot coming?! When's my shot coming?!" Blue plays on set with Bey at her 'Blow' video shoot.
80. Hey Blue!
"I can be happy sometimes, see?"
81. Blue Ivy With Daddy
"Why are we clapping, again? I'm not in the shot."
82. Jay Z Tries To Get Blue To Listen To "Magna Carta Holy Grail"
"Daddy, I'm more of a Nas fan."
83. Stepping With Mom
"Wait, Ma. I want the camera to see all angles of this sick dress!"
84. Splashin' & Playin'
"Mom, this water is clean, right? Because I'm not trying to splash in water I can't trust."
85. Beyonce Discusses Important Matters
"Mommy, I completely get it. Yes, I promise to watch the throne."
86. Mommy's Hugs
"Ok, Ma. I love you to pieces, but I like oxygen too." Bey may be the Queen, but this scene from her video "Blue" makes it look as if she can't get enough of being Mom.
87. Blue Ivy Twirls
"Aaaahh, I'm having so much fun not thinking about anything...wiippeee...oh, wait...getting a little sick."
88. Just So You Know...
"I run things. Don't get it twisted."
89. Mommy & Me Loungin'
"Oh, Mommy, I'm so tired of seeing the wigs you snatched last night all on our floor. It's so exhausting. Like, when're they getting picked up? Not now? Oh. Ok."
90. A Kiss For Blue
"Mommy, let me sleep, dang!"
91. Slurpin' On That Milk...Slurpin' Slurpin' On That Milk
"Mommy, gimme that bottle!"
We could watch this adorable GIF of Blue Ivy nonstop forever!
93. Jay Sneaks In Kisses
"Dadddd! Get..Away!..I don't want...No, ugh..No kisses!"
94. Blue Stares Back...
"Hey! Who's that?!"
95. Blue Still Doesn't Get Why Anyone's Here
"No, really, who are you? You're getting to close."
96. Blue and Bey Out For Lunch
"I'm over this now. People just won't let us be. Mom, why can't we just be?!"
97. Blue Is One Tough Cookie
"Ma, please let me just kick them in the face. Like, please, I can't see through all these lights."
98. Blue Jetsets With Jay
"Dad, do we own this boat? I just figured we owned everything, so..."
99. Beyonce Keeps Blue Covered
"Mommy, I think you forgot my feet. I'm cold right now. Are we inside?"
100. Beyonce LOVES Her Blue
Look at that face, how could you not kiss it?!