Medical Debt Cancellation Act: Erasing Debt and Removing It From Credit Reports.
This bill proposes to cancel existing medical debt through a grant program for hospitals, providing significant financial relief to millions of Americans. It also establishes strict new rules for medical billing and debt collection, including a ban on charging interest on past-due medical payments. Crucially, the legislation mandates the removal of all medical debt information from consumer credit reports, immediately boosting credit scores.
Key points
Existing medical debt cancellation: Hospitals will receive grants to eliminate eligible patient debt, prioritizing low-income individuals and emergency care debt.
Medical debt removed from credit reports: All information related to medical debt will be erased from consumer credit reports, improving financial standing.
No interest charges: Healthcare providers are prohibited from collecting interest on past-due payments for medical services.
New billing transparency: Providers must assess patients for financial assistance or charity care eligibility and inform them before payment is due.
Expired
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