Medical Debt May Return to Credit Reports

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A recent move could have a major impact on your credit score, as protections that keep medical debt off credit reports are now at risk. The current administration has moved to overrule state laws that shield consumers from having medical debt negatively affect their credit histories. This is a significant reversal that could hurt many families.

Previously, in 2023, the three major credit bureaus—Equifax, Experian, and TransUnion—jointly announced a positive change. They agreed to stop tracking medical debts under $500, a move that eliminated roughly 70% of all medical debt from consumer credit reports. Following that, states like New York and Delaware went even further, passing laws to completely ban any medical debt from being reported to credit bureaus at all. This gave many people much-needed breathing room, especially since medical billing is often confusing and disputed due to insurance delays.

However, the new effort to reverse these protections means that medical debt could once again appear on credit reports, potentially lowering scores and making it harder for people to get loans or housing. This is a developing story that could affect millions, especially those who have struggled with unexpected medical bills. It raises serious questions about financial stability and access to healthcare without the fear of long-term credit damage. We will continue to follow this story as it develops.