Oregon Taking Action to Provide Medical Debt Relief
States taking action to protect consumers
Medical debt can be devastating. Not only does it come following an unfortunate event, but it also can wreak havoc on access to credit.
However, analysis of medical debt and consumer credit indicates that medical debt is not a reliable indicator of creditworthiness. After all, anyone can get sick and end up owing a hospital or health care provider.
So, it’s good news that Oregon lawmakers are advancing a bill that would prohibit medical providers and debt collectors from reporting medical debt to credit bureaus.
The bill would allow consumers to sue medical providers and debt collectors for reporting medical debt to credit bureaus. Credit bureaus would also be prohibited from including medical debt in credit reports if they know it is related to health care. It would also expand the definition of medical debt to include debts owed for treatment, medical devices, medications, and other health-related services. General credit card debt is excluded unless the card was used specifically for medical expenses.
“Bouncing back from a serious illness is hard enough,” said Sen. Deb Patterson, chair of the Senate Health Care Committee. “We’re stopping that experience from dimming the financial future of responsible borrowers."
Other states, like Arizona, have taken steps to erase medical debt altogether:
While the federal government under the Musk-Trump administration may be taking action to eliminate key consumer protections, it is important to see states rising up to take care of their citizens.
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Medical debt only means you or family member got sick and your insurance ran out! Debt collectors and credit bureaus shouldn't be allowed to report it! It does not predict creditworthiness! when you think of the Big 3 credit bureaus, think of thugs; they are no friends of consumers, despite their incessant advertising! Abusive thugs with lobbyists! But any thug can buy or rent a lobbyist! Support a ban on reporting medical debt!