White House aiming to scrub medical debt from people’s credit scores, which could up ratings for millions
Associated PressWASHINGTON — Vice President Kamala Harris said Thursday that the Biden administration is taking the first steps toward removing medical bills from people’s credit scores, which could improve ratings for millions of people. 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,” 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.” The announcement comes after a long push by the Biden administration to minimize the importance of medical debt in how people’s creditworthiness is rated. CFPB director Rohit Chopra said the credit reporting companies Equifax, TransUnion and Experian announced last March that they would stop reporting “some but not all medical bills on an individual’s credit report.” In addition to pulling medical bills from credit reports, the proposal would prevent creditors from using medical bills when deciding on loans and stop debt collectors from using credit ratings to pressure people with health care-related debt.
History of this topic
The fight against medical debt is pivoting to the states after Trump's election
NPRBiden administration seeks to wipe consumer medical debt off most credit reports with proposed rule
Associated Press
The White House wants to remove medical debt from credit scores. Here’s why that’s a big deal
LA Times
A California bill banning medical debt from credit reports gets a boost from California Atty. Gen. Bonta
LA Times
Medical credit cards scrutinized by feds for possible predatory practices
LA TimesNew York lawmakers OK bill removing medical debt from credit reports
Associated Press
Medical debt affects millions, and advocates push IRS, consumer agency for relief
NPR
Some medical debt is being removed from US credit reports
Associated Press
‘Now we have nothing.’ Soaring medical debt causes gut-wrenching sacrifices for patients
LA Times
Column: A new law aims to protect you from surprise (read: bonkers) medical bills
LA TimesDiscover Related
