Senators Introduce Bill to Help Americans Hurt by Medical Debt
Medical debt is unlike other types of debt. As opposed to credit card debt or loans that consumers take on willingly, medical debt is often the result of unexpected accident or illness that is outside the consumer's control. Additionally, due to complex medical billing systems and the potential for misunderstandings with health insurance companies, medical bills are often sent to collections before it is clear whether it is the consumer or the insurer who owes money to the health care provider.
"No one chooses to have a sudden illness or injury," Merkley said. "Americans shouldn't be punished financially because they had the bad luck to be hit by medical misfortune. Restoring credit opportunities for these Americans is good for working America and good for our economy."
"Americans faced with a medical emergency, illness or injury should be focused on their recovery - not their credit score," Blumenthal said. "Medical debt doesn't fit in the same category as credit card debt or other consumer loans, and it shouldn't permanently prevent anyone from buying a home or a car. Separating medical debt will ensure that an accident or illness do not limit anyone's financial future."
"Medical debt should not be allowed to ruin Americans' credit scores," Feinstein said. "Even the most financially responsible family could find their credit damaged through medical expenses incurred through no fault of their own. The long-term solution to this crisis is to ensure universal health care for all Americans, but in the short term we must take steps to prevent medical debt from hurting families' ability to access credit."
"Millions of working families are hit hard every year by the unexpected financial toll of a medical emergency or an unforeseen illness," Warren said. "These consumers, who took on this debt through no fault of their own, should not have to endure the additional burden of years of bad credit. I'm glad to partner with my colleagues on a bill to help Americans who have paid off these debts get back on their feet and continue building a future."
"The number one reason for personal bankruptcy in America is medical bills," Durbin said. "In the wake of an unexpected medical emergency or sickness, expensive medical treatments and residual medical debt can be damaging to patients and their credit scores. This bill is about fairness. It gives people breathing room for recovery so that unexpected medical situations do not ruin their creditworthiness."
"All the financial planning in the world can't prepare any middle class family for a sudden medical emergency or unforeseen illnesses - and the bills that come with them," Menendez said. "Hardworking families are punished for being sick even after their medical debt is paid or settled and the damage to their credit scores can follow them for years, whether it's being denied a mortgage or getting saddled with a higher interest car loan. If we can't predict when a medical accident happens, we shouldn't penalize a consumer for having one. Now it's my hope that
"Americans who become sick or get injured should not have to worry about how this unforeseen hardship will damage their credit scores and potentially impact their ability to buy a house or take out a loan," Hassan said. "This commonsense legislation will help ease the burden for consumers whose medical debt has crippled their ability to invest, purchase consumer goods, and contribute to our economy. I will keep fighting to lower health care costs and to ensure that all hard-working Granite Staters and Americans have the support they need to get ahead and stay ahead."
Due to the atypical nature of medical debt, the predictive value of medical accounts on credit reports is low. Credit reporting companies have testified before
The Medical Debt Relief Act would ensure that medical debt that is paid off or settled by a consumer is promptly removed from a credit report rather than haunting their credit score for years after.
The full text of the Medical Debt Relief Act can be found here (https://www.merkley.senate.gov/imo/media/doc/EHF18430.pdf).
Sens. Menendez, Booker Announce Over $2 Million in Federal Funding to Boost Care Quality and Effectiveness in NJ Community Health Centers
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News