Biden Administration Moves To Block Medical Debt From Credit Reports
With an estimated 20% of U.S. households carrying some form of medical debt, the CFPB proposed new rules Thursday that aim to keep unpaid medical bills from negatively impacting consumers' credit scores.
CNBC:
White House Takes Steps To Remove Medical Bills From Credit Reports
The Biden administration wants to remove medical debt completely from consumer credit reports, so the Consumer Financial Protection Bureau on Thursday outlined its proposed rules to keep unpaid medical bills from affecting patient’s credit scores. One in 5 Americans have medical debt on their credit reports, according to the CFPB. Medical debt can lead to a debt spiral for some consumers and narrow their options for housing, loans and credit cards. (Dhue, 9/21)
AP:
White House Aiming To Scrub Medical Debt From People's Credit Scores, Which Could Up Ratings For Millions
The agency said in a statement that including medical debt in credit scores is problematic because “mistakes and inaccuracies in medical billing are common.” “Access to health care should be a right and not a privilege,” [Vice President Kamala] Harris told reporters in call to preview the action. “These measures will improve the credit scores of millions of Americans so that they will better be able to invest in their future.” (Boak, 9/21)
KFF Health News:
Biden Administration To Ban Medical Debt From Americans’ Credit Scores
New rules would also represent one of the most significant federal actions to tackle medical debt, a problem that burdens about 100 million people and forces legions to take on extra work, give up their homes, and ration food and other essentials, a KFF Health News-NPR investigation found. ... Enacting new regulations can be a lengthy process. Administration officials said Thursday that the new rules would be developed next year.(Levey, 9/21)
