Tlaib Re-Introduces Bill to Remove Medically Necessary Debt from Credit Reports

WASHINGTON, D.C. — On Wednesday, Congresswoman Rashida Tlaib (MI-12) introduced the Consumer Protection for Medical Debt Collections Act, which would prohibit the collection of medical debt for two years and prohibit debt from “medically necessary” procedures from being included on a consumer credit report. This legislation will provide much needed relief for Americans struggling with medical debt. Last year, the bill was passed in the U.S. House of Representatives and included in the Comprehensive Debt Collection Improvement Act, but the legislation was not considered by the U.S. Senate.

“Nearly one in five adults have one or more medical debt collections listed on their credit report,” said Congresswoman Tlaib. “That means one in five Americans may be denied housing, transportation, or other necessities because of a sudden health crisis or visit to the emergency room. That hits particularly hard in communities like mine, where residents already face challenges with access to credit. This bill will help increase opportunities for residents and is a major step in fixing our broken credit system.”

The Consumer Protection for Medical Debt Collections Act would provide protections and safeguards for people who, at no fault of their own, got sick and could not afford medical care due to our broken health care system. Collectively, Americans owe more than $195 billion in medical debt. Pandemic-related medical debt has only exacerbated this burden for millions of Americans.

“Treating medical debt the same as other debt is not right and leads to irreparable harm to residents who simply just needed health and medical care. Medical debt is a leading cause of personal bankruptcy in our country and the pandemic has only made the medical debt crisis worse. No one chooses to get sick. Undergoing a medically necessary procedure should never haunt someone financially. It has no place on a credit report. This is commonsense legislation and we must get it signed into law,” Congresswoman Tlaib concluded.

The full text of the legislation can be found here.

###

Recent Posts


May 15, 2024
Press

Tlaib Introduces Resolution Recognizing 76 Years of the Nakba

WASHINGTON, D.C. – Today, Congresswoman Rashida Tlaib (MI-12) introduced a House Resolution Recognizing the Nakba and Palestinian Refugees’ Rights. The Nakba, which means “catastrophe” in Arabic, refers to the mass expulsion of Palestinians from their homes and homeland during creation of the state of Israel (1947-49). The Nakba did not end in 1948, but continues […]



May 9, 2024
Press

Tlaib, Sanders, Khanna, Merkley Introduce Legislation to Eliminate Medical Debt for Millions of Working Class Americans

WASHINGTON, D.C. — Reps. Rashida Tlaib (MI-12) and Ro Khanna (CA-17) with Sens. Bernie Sanders (I-Vt.) and Jeff Merkley (D-Ore.) introduced the Medical Debt Cancellation Act, legislation to eliminate all $220 billion in medical debt held by millions of Americans, wipe it from credit reports, and drastically limit the accrual of future medical debt.  The medical debt crisis has […]



May 8, 2024
Press

Tlaib Announces Appropriations Requests for Fiscal Year 2025

WASHINGTON, D.C. — Today, Congresswoman Rashida Tlaib (MI-12) announced her priorities in the federal appropriations process for Fiscal Year 2025. One of the key ways to bring investments home to our district is through appropriations requests. Congresswoman Tlaib led several letters prioritizing the need for lead abatement, access to clean water, housing and health care […]