The Consumer Financial Protection Bureau’s (CFPB) recent move to significantly reduce medical collections reporting on consumer credit records may seem like a benign endeavor to alleviate financial distress for millions of Americans. However, this action could be the harbinger of a larger, transformative agenda in U.S. healthcare—paving the way for a single-payer system.

Recent CFPB policies have dramatically changed how medical debt is reported. By increasing the time before unpaid medical collections can appear on a consumer’s credit report to one year and completely removing paid medical collections, the CFPB has effectively lessened the visibility and impact of medical debt on consumer credit profiles. By June 2023, the percentage of consumers with medical collections on their credit records had plummeted from 14% to a mere 5%.

This might sound like a victory for consumer rights, but it also suggests a strategic manipulation of the healthcare financing environment. By removing the specter of medical debt from credit reports, the CFPB might be subtly nudging the system towards a reality where healthcare costs are increasingly seen as an inappropriate burden on individuals, hence setting the stage for more significant governmental intervention in healthcare financing.

The timing and nature of these changes prompt questions about the CFPB’s long-term goals. Is this merely consumer protection or a strategic step towards nationalized healthcare? Suppose the medical debt can disappear from public view and consciousness. What stops the government from eventually taking over as the single-payer for healthcare, ostensibly to prevent such debt altogether?

The implications of such a shift are profound. A single-payer system could increase government control over healthcare decisions, stifling innovation and competition. Moreover, the transition to such a system could disrupt the healthcare market, affecting everything from insurance premiums and the cost of prescription drugs to the availability of medical services.

As the CFPB continues to influence the healthcare debt landscape, policymakers, healthcare providers, and consumers must engage in a robust dialogue about the future of healthcare in America. Reducing medical debt on credit reports might relieve many, but the broader implications of such policy shifts warrant careful consideration. Are we ready for what might lie ahead in this covert push toward a single-payer system?

The Southwest Public Policy Institute is a research organization focused on formulating, promoting, and defending public policy solutions. It operates in eight U.S. states: Oklahoma, Texas, Colorado, New Mexico, Utah, Arizona, Nevada, and California.