Maine households struggling to pay medical debt could benefit from a proposed federal rule to remove medical bills from credit reports.

The rule would prevent credit reporting companies from sharing medical debt details with lenders and prohibit lenders from making decisions based on medical information.

Kate Ende, policy director at Consumers for Affordable Health Care, said medical bills can be inaccurate and are not predictive of a person's ability to pay debt on time.

"It doesn't add value when trying to assess somebody's creditworthiness," Ende argued. "It can really hurt people, unfairly."

Ende pointed out medical debt can make it harder for people to get a loan or refinance and lead to higher interest rates. A recent survey revealed nearly half of Maine households carry medical debt, the majority of which stems from hospital bills.

Maine passed its own consumer protection legislation this year, prohibiting collection agencies from charging interest or fees on medical debt and preventing collection agencies from suing patients for payment if their income is at least 300% below the poverty line.

Ende emphasized medical debt is forcing Mainers to make hard choices between covering their debt or paying for their basic needs like food, housing and health care.

"We know people are not getting the medical services or prescription drugs they need because of the cost," Ende observed. "And just the added stress that households and families are having to face with this burden."

Ende added roughly one-third of Mainers with medical debt said they have incurred more credit card debt to pay medical bills. She called the proposed rule "a great start," but would like to see it go further by ensuring medical debt cannot be considered by prospective employers or landlords.

The public can submit comments to the Consumer Financial Protection Bureau through Aug. 12.

Virginia advocates and lawmakers want Gov. Glenn Youngkin to allow a direct income tax filing option.

The Internal Revenue Service's Direct File program is a free online tool, which uses interview-style questions to help guarantee people claim all the tax breaks for which they are eligible. Backers of the pilot program want Gov. Youngkin to opt in.

Jay Speer, CEO of the Virginia Poverty Law Center, said other online options cost too much for some people.

"A lot of low-income people in Virginia go to tax preparers who are often located in low-income neighborhoods, pay a whole lot of money to fill out the tax forms for them," Speer observed. "They don't have extra money to pay for tax preparation."

He noted the companies are supposed to offer a free filing option, but it is often hidden or disguised. More than half of taxpayers nationwide can file at no cost, but fewer than 3% have done so. Studies showed Direct File can save Virginians more than $208 million a year in filing fees, and cut around 78 hours off their tax-filing time. Gov. Youngkin has indicated he is following the program and looking into the implications it might have.

A University of Chicago-Harris/AP-NORC poll found two-thirds of Americans believe they pay too much in taxes with too little benefit. Research shows there is truth to it, as some companies hire unenrolled tax preparers who lack qualifications and expertise in tax rules and policy. Speer pointed out people sometimes need their tax refund badly enough to use one of the services.

"They go to these places because they want to get it quickly. They don't think they can do it themselves, which they probably could," Speer contended. "There are these online programs but you know, you may not have good bandwidth where you live, and it may be hard for you to use the programs."

Studies have shown low-income people with children spend up to 22% of their refund at local tax preparation outlets. The cost to file a single return could be more than $500.

The state of Washington has launched an online system for tracking food poisoning cases.

The Washington State Health Department has opened its Foodborne Illness Notification System for filing complaints about food safety. Bill Marler, a food-safety lawyer in the state, said the system will rely on data to pinpoint potential food-safety hazards.

"If you get more and more people utilizing these services," he said, "just the sheer volume of the data will make it more useful because you get more angles to look at."

The Health Department says the system is anticipated to help with early detection of diseases, illness prevention, proactive safety measures and educational opportunities. The state has noted that one in six Americans suffers from food poisoning each year.

Marler said he believes the data collection will be helpful, but also notes that it isn't a panacea for stopping outbreaks. He said listeria is a good example: the period between consumption and onset of illness is between three and 70 days.

"I'm not sure I can remember what I ate three days ago, let alone what I ate 70 days ago," said Marler. "So, a lot of this analysis is sometimes flawed by people's memories and the incubation periods."

Marler added that listeria is also a pressing example because of the outbreak of it in deli meat. According to the Centers for Disease Control and Prevention, two people have died and 28 have been hospitalized from the current outbreak across the country, although no cases have been reported in Washington state.


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Big changes are imminent in the way homes are bought and sold, as the new forms for transactions in California come out today.

The forms are linked to the proposed legal settlement by the National Association of Realtors, which ends the long-standing practice of having a home seller's agent pay a commission to the buyer's agent. It benefited buyers who may not have saved up enough money to pay their agent.

George Lopez, a real estate agent in Indian Wells, explained buyers will now have to negotiate a separate contract to hire and pay their own agent.

"Even with these changes, a buyer can still purchase a home without having the money to pay their agent," Lopez explained. "The general public needs to understand that the real estate commissions have been, and will always be, negotiable - and that if they don't have money to pay their agent, they can still potentially negotiate it in their sale."

The lawsuit contended the old way of selling homes tended to drive up costs, as buyers' agents had more incentive to steer people to sellers willing to pay a higher commission. The changes are intended to empower homebuyers to negotiate for a better deal.

Lopez thinks most sellers will still offer to pay a real estate broker, rather than risk losing out on a big chunk of the prospective buyer pool. But it will have to be negotiated in the offer, as commissions will no longer be stated in the Multiple Listing Service. The changes also mean buyers' agents cannot just meet prospective clients "on the fly" anymore, to go check out a home for sale.

"You have to meet me at the office; we have to have a meeting," Lopez pointed out. "We have to have an agreement in place that said that you're hiring me, or I can't show you any homes."

The new forms real estate agents use to complete transactions will take effect nationwide on Aug. 17.


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