Medical Debt No Longer Reportable to Credit Reporting Agencies
The rising cost of health care in recent years has led to a significant increase in medical debt, with far-reaching impact on New York consumers and their credit. On December 13, 2023, Governor Kathy Hochul signed legislation known as the Fair Medical Debt Reporting Act designed to address this consumer debt burden. The new law, which took effect immediately, bars hospitals (including nursing homes), health care professionals, and ambulance companies from reporting unpaid medical debt to consumer reporting agencies.
In addition, any contract between these medical providers and a collection entity must include a provision prohibiting that entity from reporting any unpaid medical debt to a credit reporting agency. Likewise, consumer reporting agencies may not include information on medical debt in their reports or files on a consumer, regardless of the date the debt was incurred.
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