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BumRushDaShow

(132,085 posts)
Tue Jun 11, 2024, 08:16 AM Jun 11

In sweeping change, Biden administration to ban medical debt from credit reports

Source: ABC News

June 11, 2024, 7:00 AM


In a sweeping change that could improve millions of Americans’ ability to own a home or buy a car, the Biden administration will propose a rule Tuesday to ban medical debt from credit reports.

The rule, which will be announced by Vice President Kamala Harris and Consumer Financial Protection Bureau Director Rohit Chopra, comes as President Joe Biden beefs up his efforts to convince Americans his administration is lowering costs, a chief concern for voters in the upcoming election.

The rule, which has been in the works since September, could go into effect sometime next year, Chopra told ABC News in an exclusive interview ahead of the policy announcement.
Rohit Chopra, director of the Consumer Financial Protection Bureau, speaks during a hearing in Washington, DC, US, on Thursday, May 9, 2024. (PHOTO: Tierney L. Cross/Bloomberg via Getty Images)

“Our research shows that medical bills on your credit report aren't even predictive of whether you'll repay another type of loan. That means people's credit scores are being unjustly and inappropriately harmed by this practice,” Chopra said.

Read more: https://abcnews.go.com/Politics/sweeping-change-biden-administration-ban-medical-debt-credit/story?id=110997906

16 replies = new reply since forum marked as read
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In sweeping change, Biden administration to ban medical debt from credit reports (Original Post) BumRushDaShow Jun 11 OP
This is a long time coming. SKKY Jun 11 #1
The cost of prescriptions alone can rack up some debt BumRushDaShow Jun 11 #2
Check This Out: P-Nutt Jun 11 #11
And there you have it BumRushDaShow Jun 11 #13
Jesus H. Christ in a chicken basket. I stand corrected. SKKY Jun 11 #15
Who will be the first to step up dweller Jun 11 #3
My monies on........... KS Toronado Jun 11 #6
Speaking as someone Roc2020 Jun 11 #4
I remember reading somewhere that the whole 'credit score' thing was dreamed up by a consortium Aristus Jun 11 #5
That rings true. Traurigkeit Jun 11 #8
Yup BumRushDaShow Jun 11 #9
I've never understood the whole credit card score thing. Abolishinist Jun 12 #16
It would be infinitely better to prevent medical debt in first place. Silent Type Jun 11 #7
True but Elessar Zappa Jun 11 #10
Fantastic Johnny2X2X Jun 11 #12
Thank you Joe Biden! FakeNoose Jun 11 #14

BumRushDaShow

(132,085 posts)
2. The cost of prescriptions alone can rack up some debt
Tue Jun 11, 2024, 08:31 AM
Jun 11

especially if you have no medical insurance or insufficient insurance. And don't get sick only to get hit with a $10,000 per day bill in a hospital (filled with all kinds of over-priced stuff).

Need an ambulance? That can range from $400 to over $1000 for the ride - https://www.cbsnews.com/news/ambulance-surprise-medical-bill-balance-billing-state/ and air ambulances are well over $10,000 or more per trip.

P-Nutt

(60 posts)
11. Check This Out:
Tue Jun 11, 2024, 11:45 AM
Jun 11

In late January this year, my pacemaker went into "emergency" mode, requiring immediate replacement. I live about 75 miles from the Hospital that does these surgeries. I had to take an Ambulance ride from my home to the Emergency Room at our local hospital to be placed on a "Lifepak" unit to be externally paced. Then airlifted to Charleston, SC, where the changeout would occur. $800.00 for the local ride in an Ambulance, the another $65,000.00 for the Helicopter ride. Then a $135,000.00 pacemaker changeout. Add in Dr's fees, Hospital costs, and I had a really nice $225,000.00 medical bill. Getting sick ain't cheap!

Roc2020

(1,634 posts)
4. Speaking as someone
Tue Jun 11, 2024, 10:20 AM
Jun 11

that works in the healthcare/health insurance industry, this a huge deal. Glad I came to DU today

Aristus

(66,902 posts)
5. I remember reading somewhere that the whole 'credit score' thing was dreamed up by a consortium
Tue Jun 11, 2024, 10:44 AM
Jun 11

of lenders who wanted to ensure that, if people want to continue to have a good credit score, they have to keep on borrowing.

Did I read that right? Is this true?

Traurigkeit

(988 posts)
8. That rings true.
Tue Jun 11, 2024, 10:59 AM
Jun 11

If one has never borrowed , never opened bank account, there would be no rating on that person.

BumRushDaShow

(132,085 posts)
9. Yup
Tue Jun 11, 2024, 11:06 AM
Jun 11

and if you don't take out some kind of loan or sign up for more cards over time, then your credit rating drops. But if you have "too many" credit cards, then your credit rating drops, even if you pay them off every month.

Heads they win, tails you lose.

Abolishinist

(1,423 posts)
16. I've never understood the whole credit card score thing.
Wed Jun 12, 2024, 01:31 AM
Jun 12

Several years ago my score was around 740. For fun and games I decided to see what I could do to increase it. So I applied for, and received, a number of new cards (not a bad thing, I got a lot of cash incentives doing so). So I now have a total of 25 cards, with a total credit limit of $270,000. I also pay off my cards before the end of the billing cycle, so I might have tops around $1,500 in outstanding debt at any one time. So what do I get for all this? My last Experian score was 850.

But this is what I don't understand, how does this have anything at all do to with my ability to pay off my credit card debt. My income level is what I choose to give them, and then there's this... apparently if I have a mortgage I'm a BETTER credit risk then if I own my house free and clear, which I do. And I don't have an auto loan, which is another strike against me.

None of this makes sense. No mortgage debt, no auto loan, and your score is lower.

Duh.

Johnny2X2X

(19,728 posts)
12. Fantastic
Tue Jun 11, 2024, 11:50 AM
Jun 11

What Biden has accomplished for the American people is staggering. Truly too long of a list to even keep trackof.

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