Source: United States House of Representatives – Congressman Mike Gallagher (8th District Wisconsin)
“In the midst of a pandemic, the last thing people need to worry about is the impact of surprise medical bills on their credit,” said Rep. Gallagher. “The Fair Medical Reporting Act gives Americans more time to settle and pay off medical debt, and is a simple step we can take to help ensure no family suffers the long-term consequences of stressful medical bills. This common-sense idea should absolutely be included in any future Coronavirus relief Congress considers.”
While some credit bureaus currently offer a grace period of up to 180 days before reporting medical debt, the process lacks transparency and can leave consumers in the dark about when their debt is reported. The Fair Medical Debt Reporting Act would:
- Delay the reporting of medical debt on a credit report by one year,
- Remove medical debt from an individual’s credit report if the debt is settled within one year, and
- Ensure patients have a detailed account of the medical bill before it is shared with a consumer reporting agency.