CORPUS CHRISTI, Texas — More than 40 million people have unpaid medical bills on their credit reports. As reported on KRIS 6 News, the Biden Administration is warning people not to take out medical credit cards.
The No Surprise Act that was passed in congress in 2022. That act protects consumers from surprise medical bills if insurance doesn't cover what the consumer thought it would, or if a hospital double bills them.
Credit reporting agencies are now doing their part to help out even more when it comes to medical expenses. According to the Consumer Financial Protection Bureau Agency, any medical debt already paid or less than a year old will no longer be on a consumer's credit report.
Credit reporting companies also removed all medical debt under $500. This will ultimately benefit not only credit now, but consumers in the future.
"It's not fair for someone in a medical emergency to have their credit expenses affected with $3000 worth of medical debt. It's not fair," credit expert Gabriel Garcia said.
Oregon Senator Jeff Merkley is one congressman who is working on introducing legislation that will eliminate medical debt from credit reports completely.
