The Biden administration has finalized a rule barring unpaid medical bills from ...






The Biden administration has implemented a new rule that prohibits unpaid medical bills from being reported on credit histories, which could significantly benefit millions of Americans by potentially raising their credit scores. The Consumer Financial Protection Bureau (CFPB) estimates that this change will eliminate $49 billion in medical debt from credit records, affecting over 15 million individuals. On average, it is projected that credit scores may increase by about 20 points, leading to around 22,000 additional mortgage approvals each year. Vice President Kamala Harris emphasized the transformative nature of this policy, asserting that economic opportunities should not be denied due to health-related issues. Harris also highlighted that over $1 billion in medical debt has been alleviated for more than 700,000 Americans using federal pandemic relief funds. The CFPB contends that medical debt does not reliably reflect an individual's repayment capabilities. Major credit reporting agencies, such as Experian, Equifax, and TransUnion, had already ceased reporting medical debts under $500, and this new rule extends those changes to larger unpaid medical bills, further decoupling healthcare expenses from financial accessibility.





https://instegro.net/the-biden-administration-has-finalized-a-rule-barring-unpaid-medical-bills-from/?fsp_sid=22511

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