Kamala Harris Pushes New Federal Rule to Help Americans Hit Hard by Medical Debt
Vice President Kamala Harris is turning her long-standing passion for consumer protection into policy.
On Tuesday, Harris announced a new federal rule that will block credit agencies from including medical debt on credit reports—a move she said will “be life-changing for millions of families.”
The rule marks a major step in President Joe Biden’s administration’s ongoing effort to address the crisis of medical debt in America.
“No one should be denied economic opportunity because they got sick or experienced a medical emergency,” Harris, a longtime advocate for easing the financial burden of medical debt on Americans, said in a prepared statement. “This will make it easier for them to be approved for a car loan, a home loan, or a small-business loan.”
The rule marks a major step in the Biden administration’s ongoing effort to address the crisis of medical debt in America, which affects roughly 15 million people and totals a staggering $49 billion, according to the Consumer Financial Protection Bureau.
Still, questions remain about how far this new rule will go to relieve financial hardship. A recent study by RIP Medical Debt, a nonprofit that buys and cancels medical debt, found that large-scale debt relief had little immediate effect on individuals’ financial well-being or healthcare usage.
However, the organization has continued to refine its approach, and advocates insist that removing medical debt from credit reports is a crucial step toward long-term financial recovery for many Americans.
