New York lawmakers OK bill removing medical debt from credit reports
Hospitals and other health care providers in New York would be banned from reporting medical debt to credit agencies under a bill passed this week by the state’s legislature
ALBANY, N.Y. (AP) — Hospitals and other health care providers in New York would be banned from reporting medical debt to credit agencies under a bill passed this week by the state's legislature — a measure intended to limit the damage that illness and injury can do to someone's financial health.
If signed by Gov. Kathy Hochul, the law would make New York the second state, after Colorado, to prohibit medical debt from being collected by credit reporting agencies or included in a credit report.
National credit reporting agencies had already voluntarily agreed to not report medical debts under $500, but advocates say additional protections are needed.
A bad credit report often means difficulty renting a house, buying a car, or securing a loan. And unlike someone whose credit is damaged by reckless spending or a bad investment, people often find themselves hit with huge, unexpected medical bills simply because they've suffered from disease or injury.
