A medical debt cancellation trade

Predicting a fraud

Kamala Harris has proposed some medical debt forgiveness. (There is already some going on using funds from the American Rescue Plan.)

If a law passes to cancel medical debt, then some people will try to do this trade:

1. Go into debt buying expensive medical supplies

2. Sell them

3. Get the debt canceled

That would be a good trade! You’d hope the rules prevent it. So far, a quick search for “medical debt forgiveness fraud” doesn’t turn up much. Still, I predict we’ll see a couple stories about someone trying it and getting caught.