Federal Regulations Proposed to Protect Americans from Medical Debt

The Consumer Financial Protection Bureau has proposed new regulations that could protect Americans from having their credit scores negatively impacted by medical debts. This move aims to provide relief to the estimated 100 million people burdened by medical bills they cannot afford.

If enacted, the rules would prevent medical bills from appearing on credit reports, removing current medical debts as well. This would be a significant step in addressing the financial challenges faced by many individuals due to healthcare debt.

The Biden administration has also called on states to expand efforts to restrict debt collection by hospitals and provide more charity care to low-income patients. Additionally, they are urging state and local governments to buy up medical debt and retire it, a strategy that has gained popularity nationwide.

While the proposed regulations are still under review, they have the potential to have a major impact on patients’ financial security and health. The administration hopes to issue a final rule early next year after considering public comments.

Overall, these proposed regulations could provide much-needed relief to individuals struggling with medical debt and prevent credit scores from being unfairly impacted by healthcare expenses.