Biden Administration Announces Major Initiative to Protect Americans from Medical Debt

The Biden administration announced a major initiative on Thursday to protect Americans from medical debt. The proposed regulations, if enacted, would bar unpaid medical bills from affecting patients’ credit scores, potentially helping tens of millions of people who have medical debt on their credit reports.

Vice President Kamala Harris said the Biden administration is taking the first steps toward removing medical bills from people’s credit scores, which could improve ratings for millions of people. The agency said in a statement that including medical debt in credit scores is problematic because “mistakes and inaccuracies in medical billing are common.”

The new rules would represent one of the most significant federal actions to tackle medical debt, a problem that burdens about 100 million people and forces legions to take on extra work, give up their homes, and ration food and other necessities.

According to a recent study, one in five people report having medical debt. The proposed regulations would help alleviate the burden of medical debt for many Americans, allowing them to access credit and other financial services without the fear of medical debt dragging down their credit scores.

The Biden administration is currently seeking public comment on the proposed regulations, and the final regulations are expected to be released later this year.