Medical debt could soon be eliminated from data impacting credit scores
The Biden administration is taking a major step to shield Americans from a side effect of medical debt – damaged credit scores. The White House is planning to introduce federal rules that would prevent unpaid medical bills from damaging patients’ credit scores, potentially benefiting millions of people.
Hospitals commonly threaten to report medical bills to credit bureaus to get patients to pay their bills, according to KFF. Medical debt is a problem that affects around 100 million Americans, pushing some to take on extra jobs, lose their homes, or struggle to afford necessities.
Vice President Kamala Harris announced the initiative, saying, “No one in this country should have to go into debt to get the quality health care they need.” She said the President’s plan will boost the credit scores of millions of people – and allow them to help invest in their future.
While many people will welcome medical debt relief, it’s important to note that they won’t take effect immediately. Officials say the rules will be developed in the coming year and there is some expected pushback.
If this federal rule goes into effect, would it help you? Tell us what you think!