A proposed rule from the Biden administration could bring significant financial relief to 15 million Americans with $49 billion in unpaid medical bills. By excluding medical debt from credit reports, the rule aims to ease the economic burden tied to serious health problems. This initiative could benefit an estimated 100 million people in the U.S. grappling with medical or dental bills. The rule would prohibit lenders from considering medical debt when evaluating credit eligibility, and prevent medical devices from being used as loan collateral. In 2023, credit bureaus like Equifax, Experian, and TransUnion already removed paid bills and those under $500 from credit reports, but the proposed rule would make these changes permanent. This move could especially aid people of color, who are disproportionately affected by medical debt due to higher rates of chronic illness and wealth gaps. The public can comment on the proposed changes until August 12.
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