As Biden plans to ban medical debt from credit scores, advocates press for more change
"We know that many Americans don't have $500 in savings, [yet] many Americans have health insurance plans that require them to pay thousands of dollars out of pocket. Those things…
The dramatic impact of medical debt on credit scores may soon be a thing of the past. On Thursday, the White House announced a plan outlined by the Consumer Financial Protection Bureau (CFPB) to eliminate medical debt from credit reports. The move — which follows an earlier decision from the three main credit bureaus to eliminate paid medical debt, medical debt that’s less than a year old, and medical debt balances lower than $500 from credit reports — could affect the tens of millions in the U.S. who have unpaid medical bills.
Anti-debt advocates have long highlighted the injustices of medical debt, a major cause of personal bankruptcy in the U.S. The burden of medical debt weighs on people in various financial situations: some may be uninsured, while others may be insured but have high deductibles or coinsurance policies that result in costly bills, said Patricia Kelmar, the director of health care campaigns for the U.S. at PIRG, a public interest advocacy.
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