The bill is similar to proposals in the 116th Congress to delay credit reporting on medical debts.
2/4/2021 14:00
Senate and House Democrats are seeking to remove medical debts from consumers’ credit reports and delay credit reporting in new legislation with, the Medical Debt Relief Act, which was proposed this month.
The bill, sponsored by U.S. Sen. Jeff Merkley, D-Ore., and U.S. Rep. Katie Porter, D-Calif., “would remove paid-off or settled medical debt from a patient’s credit report and institute a year-long waiting period before new medical debt can be reported,” according to a news release from Merkley’s office.
The legislation is cosponsored by U.S. Sens. Robert Menendez, D-N.J., Richard Blumenthal, D-Conn., and Chris Van Hollen, D-Md.
Similar legislation was introduced in the House and Senate in the 116th Congress.
In the House, the Consumer Protection for Medical Debt Collections Act, sponsored by U.S. Rep. Rashida Tlaib, D-Mich., did not advance during the 2020 legislative session, ACA International previously reported.
The bill would “amend the Fair Debt Collection Practices Act to provide a timetable for the collection of medical debt by debt collectors, to amend the Fair Credit Reporting Act to prohibit consumer reporting agencies from issuing consumer reports containing information about debts related to medically necessary procedures, and for other purposes,” ACA previously reported.
ACA’s team is reviewing the bill. ACA and the Healthcare Financial Management Association recently issued best practices for medical debt collection.
Read more on advocacy efforts in ACA’s advocacy booklet for 2021.