- cross-posted to:
- health@lemmy.world
- cross-posted to:
- health@lemmy.world
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.
This is the dumbest solution. People are strapped down by awful debt. Instead of helping them with that, they’re going to make it easier for these indebted people to take on more debt. Brilliant!
There are a lot of things tied to credit reports that have nothing to do with taking on debt.
Your credit score isn’t just about taking on debt. If your credit is bad, you might not even be able to rent an apartment. Some employers also look at credit score, so it could prevent you from getting a job. It also means you’ll have higher interest rates if, for example, you need to finance a car.