Military personnel may invoke Civil Relief Act - Policy Watch - Brief Article

Healthcare Financial Management, May, 2003

One homefront impact of the war is that some military personnel have started to contact providers and insurance plans to seek financial relief under the Soldiers' and Sailors' Civil Relief Act of 1940 (SSCRA). This act suspends civil and financial obligations for armed forces, reservists, and members of the National Guard while they are on active duty.

If a servicemember's active duty has reduced his or her income, then that individual can apply for protection from creditors' actions on financial obligations made before the active duty started. The individual may be eligible for reduced interest rates if the preservice rate exceeds 6 percent. A person called to active duty may also reinstate a health insurance plan that was terminated during the course of duty.

SSCRA relief does not go into effect automatically; a servicemember must apply to the creditor for it. The act doesn't address financial obligations for healthcare services delivered to the dependents of military members during a tour of duty; however, healthcare providers can avoid an unexpected surge in bad-debt write-offs and maintain good patient relations by reviewing bad-debt policies with the armed forces' needs in mind, examining the changing financial conditions of dependents, and applying charity care standards when appropriate.

To read the SSCRA, go www.access.gpo.gov/uscode/title50a/50a_10_1_.html. For an explanation of the law, prepared by the Department of Defense, go to www.rota0169.navy.mil/pages/mob_docs/SSRA.doc.