Biden admin looks to remove medical debt from credit reports

by ian

Millions of Americans could see medical debt scrubbed from their credit reports.

The Consumer Financial Protection Bureau proposed new regulations this week, which if passed would remove up to $49 billion in medical debt from credit reports. Vice President Kamala Harris announced the plan last month.

It’s estimated one in five American households is dealing with medical debt, with the average amount being more than $4,000. Some people could see their credit scores jump by as much as 20 points under the new regulations.

There could be a downside, though, as some critics say the policy might lead to doctors requiring more upfront payments out of fear that patients will be less likely to pay back their debt.