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

[BumRushDaShow]

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

[SKKY]

1. This is a long time coming.

Although, I'm not sure of the actual impact it will have on the majority.

[BumRushDaShow]

2. The cost of prescriptions alone can rack up some debt

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]

11. Check This Out:

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!

[BumRushDaShow]

13. And there you have it

Am glad you are still on this side of the ground in any case!

[SKKY]

15. Jesus H. Christ in a chicken basket. I stand corrected.

And I 2nd what BumRush said.

[dweller]

3. Who will be the first to step up

And sue the Biden admin to stop this from taking effect ?
😐



✌🏻

[KS Toronado]

6. My monies on...........

[Roc2020]

4. Speaking as someone

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

[Aristus]

5. I remember reading somewhere that the whole 'credit score' thing was dreamed up by a consortium

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]

8. That rings true.

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

[BumRushDaShow]

9. Yup

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]

16. I've never understood the whole credit card score thing.

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.

[Silent Type]

7. It would be infinitely better to prevent medical debt in first place.

[Elessar Zappa]

10. True but

given our current situation, this is good news.

[Johnny2X2X]

12. Fantastic

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

[FakeNoose]

14. Thank you Joe Biden!