In a sweeping change that could improve millions of Americans' ability to own a home or buy a car, the Biden administration will propose a rule to ban medical debt from credit reports.
The rule will be announced Tuesday and could go into effect sometime next year.Biden administration to ban medical debt from credit reportsIn a sweeping change that could improve millions of Americans' ability to own a home or buy a car, the Biden administration will propose a rule Tuesday to ban medical debt from credit reports.
CFPB's research estimates that the new rule would allow 22,000 more people to get approved for safe mortgages each year - meaning lenders could also benefit from the positive impact on peoples' credit scores, by being able to approve more borrowers. Once those debts go to collections, credit scores take a hit, which means car and home loans are harder to come by or are only offered with high interest rates - leading to a slippery slope for people who are already struggling with their bills.
Though she was later able to enroll in health insurance through the Affordable Care Act, Coburn's medical debt still grew to over $2,300 - including another $1,532 from dental work and a separate ER visit, both in 2019."Immediately my medical debt was in the way of qualifying for a good loan that didn't have an outrageous payment per month," Coburn said.
"Too often, we see that people are receiving bills that are inaccurate. Many patients are fighting over these bills for months, only to find that it then appears on their credit report," he said. "People might be mistaken and think, oh, well, she's got Medicare, she's all set. That's not the case at all, and it can screw your whole life up. It takes control of your whole life," Davis said.
Of course, for now, those large bills and low repayment rates are already a challenge for hospitals and health care systems.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jill Biden: Americans Will Choose ‘Good’ Biden over ‘Evil’ TrumpSource of breaking news and analysis, insightful commentary and original reporting, curated and written specifically for the new generation of independent and conservative thinkers.
Read more »
Live updates: Hallie Biden, Beau Biden’s widow, completes testimony in Hunter Biden gun trialHunter Biden faces three felony charges related to a gun he purchased in 2018. His trial began Monday in Delaware.
Read more »
Live updates: Hallie Biden, Beau Biden’s widow, describes Hunter Biden’s drug useHunter Biden faces three felony charges related to a gun he purchased in 2018. His trial began Monday in Delaware.
Read more »
Hunter Biden gun trial: Beau Biden's widow Hallie Biden testifies about crack useThe Hunter Biden trial comes after former President Donald Trump was found guilty on 34 felony counts of falsifying business records.
Read more »
Hunter Biden gun trial: Beau Biden's widow Hallie Biden testifies about crack useThe Hunter Biden trial comes after former President Donald Trump was found guilty on 34 felony counts of falsifying business records.
Read more »
Hunter Biden trial live updates: Hallie Biden testifies about drug addictions that rocked the Biden familyThis is additional taxonomy that helps us with analytics
Read more »