This landmark Biden administration rule eliminates medical debt from consumer credit reports, significantly impacting credit scores. The new regulation prevents lenders from using unpaid medical bills to assess creditworthiness. This change aims to alleviate the financial burden of medical debt on millions of Americans and promote fairer lending practices. The impact is expected to improve access to credit for those previously hindered by medical debt.
Read More
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.
Read More
The Biden administration’s final rule eliminates unpaid medical debt from credit reports, impacting over 15 million Americans and removing $49 billion in debt. This change, expected to boost credit scores by an average of 20 points, will prevent lenders from using medical debt in loan decisions. The rule follows the credit bureaus’ prior action of removing medical collections under $500 and is projected to increase mortgage approvals significantly. This action aims to address the inequity of individuals facing financial hardship due to medical expenses.
Read More
This article is protected by copyright held by Fortune Media IP Limited. Its use is governed by the site’s Terms of Use and Privacy Policy. The FORTUNE trademark is registered domestically and internationally. The site may include affiliate links, and offers are subject to change.
Read More
The Biden administration’s recent move to ban medical debt from credit reports is a significant step towards addressing a long-standing problem in the American healthcare system. This action directly impacts millions of Americans burdened by medical debt, a situation often arising through no fault of their own.
This initiative aims to alleviate the financial strain on individuals struggling to manage healthcare costs. High medical expenses frequently result in unpaid bills, which then negatively affect credit scores, creating a vicious cycle of financial hardship. By removing this type of debt from credit reports, the administration hopes to give individuals a fresh start and a fairer chance to rebuild their financial lives.… Continue reading
The Lindaburys, facing a $200,000 medical debt from Atrium Health, had a lien placed on their home. After 15 years of struggling to pay, Atrium Health unexpectedly released the remaining $92,262 lien, freeing the couple from their financial burden. This action was part of a larger initiative by Advocate Health, Atrium Health’s parent company, to release 11,500 home liens across multiple states. The decision followed reporting on Atrium Health’s aggressive debt collection practices, highlighting the significant problem of medical debt in the United States.
Read More
I am absolutely ecstatic about the recent news that the Biden administration plans to ban medical debt from credit reports. This is a monumental decision that has the potential to positively impact the lives of so many Americans. Medical debt is a crippling burden that far too many of us have had to endure, and the fact that it can significantly damage our credit scores is both unjust and unreasonable.
The current state of affairs when it comes to medical billing is exasperating, to say the least. The maze of different bills from various clinics, hospitals, and doctors can be overwhelming and nearly impossible to keep track of.… Continue reading
As a former EMT, I have witnessed the panic and distress people go through when faced with astronomical medical bills. It’s a reality that 400,000 Americans go bankrupt every single year due to medical expenses, and the lack of universal healthcare in the United States is nothing short of a travesty. The fact that 68,000 citizens lose their lives annually because they cannot afford proper care is a bitter pill to swallow.
Being someone who grapples with Multiple Sclerosis, I am all too familiar with the exorbitant costs of healthcare. The fear of burdening my loved ones and the uncertainty surrounding my medical needs is a persistent worry that looms over me.… Continue reading
As I read the headline “New York City plans to wipe out $2 billion in medical debt for 500,000 residents,” a rush of emotions and thoughts flood my mind. This is not just an ordinary news story; it is a beacon of hope and a call for change. The fact that a city is taking such a bold step to alleviate the burden of medical debt speaks volumes about the brokenness of our healthcare system and the urgent need for reform.
Medical debt, a haunting specter that looms over the lives of millions of Americans, is not a result of personal irresponsibility or choice.… Continue reading
John Q. Hosedrinker 
Matt Underwood