Biden Administration Moves To Block Medical Debt From Credit Reports, Offering Relief To Millions

Biden Administration Moves To Block Medical Debt From Credit Reports, Offering Relief To Millions

The Biden administration has announced a new federal rule that will prevent credit agencies from including medical debt in individuals’ reports. The rule is part of broader efforts to help Americans burdened by medical bills due to illness or injury. Vice President Kamala Harris, who has long advocated for medical debt relief, called the rule “life-changing” for millions, noting it will help people qualify for loans.

Approximately 15 million Americans owe around $49 billion in medical debt, according to the Consumer Financial Protection Bureau.

However, the impact of the new rule is uncertain, as studies have shown that debt relief efforts, like those by RIP Medical Debt, had limited effects on financial well-being. Still, supporters argue that the federal government’s focus should be on providing comprehensive health insurance to all Americans, which has been a priority for Harris and the Biden administration.

Under their leadership, the uninsured rate has dropped to historic lows, largely due to changes to the Affordable Care Act.

Is this a good move?