I wonder if part of this has to do with the more complex, piecemeal nature of medical debt and these buybacks.
How I understand several of these groups (I'm not certain of the one in the article) do these debt purchases is that they purchase debt that has already been bundled together and resold. So when a person owes medical debt to a hospital, a doctor, a surgeon's practice, a pharmacy, etc, they may owe 15k in total, and these buybacks only cover one resold debt, they may have their hospital debt forgiven, for example, but still own 10k in total to the 3 or 4 other creditors.
Contrast that to a mortgage debt, for example, where paying off the mortgage relieves all anxiety around that debt, and I can see how the difference in complex, multi-creditor debt versus simpler, singular-creditor debt could help address the findings of this study.
Paying off your mortgage virtually eliminates your chances of ending up homeless, and absolutely drastically reduces those odds in the near term. This is at the foundational layer of Maslov's hierarchy of needs. I'd expect the impact on one's daily sense of well being to be massive.
Paying off your medical debt might improve your credit score over a long period of time, assuming you have other things going for you in that area. People who are worried about becoming homeless generally do not give a single shit about their credit scores. Having good credit one day is an aspirational thing for probably the majority of humans, closer to the 'optional' upper layer of Maslov's model.
I like how a foundational layer of maslov's hierarchy of needs is just something we shrug off as unattainable to many, but god forbid we discourage people from chasing profits at the expense of all else
How I understand several of these groups (I'm not certain of the one in the article) do these debt purchases is that they purchase debt that has already been bundled together and resold. So when a person owes medical debt to a hospital, a doctor, a surgeon's practice, a pharmacy, etc, they may owe 15k in total, and these buybacks only cover one resold debt, they may have their hospital debt forgiven, for example, but still own 10k in total to the 3 or 4 other creditors.
Contrast that to a mortgage debt, for example, where paying off the mortgage relieves all anxiety around that debt, and I can see how the difference in complex, multi-creditor debt versus simpler, singular-creditor debt could help address the findings of this study.