Medical debt is a significant problem for many Americans. About a third of working-age individuals struggle to pay their medical bills. More than half of Americans have not been able to pay their medical bills on time or in full. This has contributed to the $88 billion in debt reported on consumer credit records as of June 2021.
In September, the Biden administration announced it is developing new regulations. These are intended to stop medical debt from appearing on consumer credit reports. The goal is to reduce the financial strain on citizens and prevent further harm to their credit scores.
State lawmakers are also taking steps to address this issue. New York and Colorado have passed laws to prevent medical debt from appearing on consumer credit reports. These laws are similar to the federal initiative.
Several state legislatures are currently considering measures to address medical debt. These measures aim to lessen the impact of medical debt on Americans. This shows an increasing awareness of the issue at both the state and federal level.