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Monday, June 09, 2008
You know that a bad credit history can prevent you from buying a car or getting a home loan, but maybe you didn't realize that a bad score could also affect your ability to receive health care. You may even find yourself struggling to cut health costs in the struggle to make up for insurance. This may be especially worrying for students, who often are saddled with debt once they leave college. A post-grad student may find themselves strapped with debt and seeking a replacement for the student health coverage that they once came to depend upon. And call us crazy, but young Americans are thought to have poor credit scores.
The fact is: Our scores aren't that bad, but why are health care providers trying to find a way to set insurance rates based on our credit rating? A 2005 study conducted by one of the three major credit agencies shows that those between the ages of 18-29 have an average credit score of 637, which falls into the “good” category. It's not “excellent” or “very good”, but it's decent enough to stay above the cutoff point for a prime lending rate.
MedFICO: A Credit Score for Health Care
Healthcare Analytics, a full-service health care actuarial consulting firm covering every aspect of healthcare administration, is teaming up with the credit industry to create a health credit score. Yes, a health credit score, just like the ones companies scrutinize when debating whether or not to give you a loan to buy your $600,000 dream house or that hybrid Lexus SUV you've been coveting.
The new measure would be called a MedFICO, and not only would it determine if you would get top notch care, but if you would even get seen at all. A MedFICO score would analyze a patient's ability to pay future medical bills, Healthcare Analytics wants you to know, and wouldn't be available to healthcare providers until after treatment is provided.
Is the MedFICO Health Rating Harsh?
This sounds a little less harsh than being turned away at the doctor's door for having a less than rosy credit history, but it's still shocking for some consumers. Most people have learned over time and through experience that making bad decisions with money as a young, careless buck can haunt you through your adult years, but few have expected the trickle down into health care.
Does the way you used to handle your debts have a lot to do with how you manage your money now? Not necessarily, but all healthcare providers would be seeing is a set of numbers and your credit history. It's akin to a dating service showcasing all your past relationships in all their horrific and embarrassing glory. Yes, these experiences have helped shape you into the person you are today, but it doesn't speak to the people you speed-date and cyber-chat with today.
Source: http://www.informativepost.com/2008/05/28/
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