Unpaid medical debt will no longer appear in New York residents’ credit reports under a bill signed into law by Gov. Kathy Hochul on Wednesday.
The law prohibits credit agencies from collecting information about or reporting medical debt. The law also bans hospitals and health care providers in the state from reporting such debt to the agencies.
New York is the second state after Colorado to enact such a law. A similar nationwide measure is being considered by the federal Consumer Financial Protection Bureau.
“Medical debt is such a vicious cycle. It truly hits low-income earners, but it forces them to stay low-income earners because they can’t never get out from under it,” Hochul, a Democrat, said at the bill- signing ceremony in New York City.
One day you black out. You wake up. You’re now $20,000 in debt.
None of this debt makes sense to begin with. This change doesn’t fix that.
Now you are cleared for more debt. System is working as intended.
No, but it’s a step in the right direction. You’re not going to have your application for an apartment denied due to that credit hit now, for example.