Biden Bans Unpaid Medical Bills From Credit Reports
A new Biden administration rule will eliminate $49 billion in medical debt from the credit reports of over 15 million Americans, effectively preventing its use in loan applications. This action, praised by Vice President Harris as “lifechanging,” is projected to boost credit scores by an average of 20 points and facilitate thousands of additional mortgage approvals annually. The rule addresses the issue of medical debt’s inaccurate prediction of repayment ability, building upon prior efforts by credit reporting agencies to remove smaller medical debts. The initiative complements over $1 billion in state and local medical debt relief already enacted using pandemic aid funds.
John Q. Hosedrinker