Medical Debt Relief Act Reintroduced in Senate

Sen. Jeff Merkley (D-OR) has reintroduced legislation to amend requirements for reporting medical debt under the Fair Credit Reporting Act

Co-sponsors of the Medical Debt Relief Act include U.S. Sens. Richard Blumenthal, D-Conn., Dianne Feinstein, D-Calif., Elizabeth Warren, D-Mass., Dick Durbin, D-Ill., Bob Menendez, D-N.J. and Maggie Hassan, D-N.H.

The Medical Debt Relief Act would “amend the Fair Credit Reporting Act to institute a 180-day waiting period before medical debt will be reported on a consumer’s credit report and to remove paid-off and settled medical debts from credit reports that have been fully paid or settled.”

KTVZ: “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.”

For more information on the issues surrounding medical debt, please contact RIP Medical Debt.