by Serwan Zangana
Medical bills in America are the heaviest burdens on people, which can drain everyone’s savings account and cause thousands of others to fall under medical debts. As they appeared on people’s credit reports, the medical debts have significantly affected their lives in many circumstances and halted them in various situations, such as applying for jobs, loans, and even disqualified them in purchasing or renting.
The federal Consumer Financial Protection Bureau (CFPB) during Biden’s Presidency ruled to remove medical debts from credit reports in order to protect people from the impact of these debts and prevent the lenders or other places that require credit reports check from assessing people’s credit based on their medical debts.
Sadly, on July 11, the federal court in Texas ruled to remain the medical debts on consumers’ credit reports, which means canceling the (CFPB) ruling under the former Biden’s Administration. The purpose of the previous rule, according to the (CFPB), was to remove an estimated $49 billion in medical bills from credit reports of about 15 million Americans. However, canceling this rule will impact millions of Americans and indeed create difficulties for them in many aspects.
Over all, the costly healthcare and medical treatments in the U.S is a major issue for the Americans. Such an issue is leading to debt and bankruptcy, and perhaps, is impacting the mental health status of many Americans. Moreover, while America’s medical field is the most advanced in the world, the lack of affordability can cause a mental derangement as it occurred with Luigi Mangione, who in 2024 heinously killed the CEO of the UnitedHealthcare, Brian Thompson. Luigi was angry over the health care and insurance industries.
Now, In addition to the costly medical treatments, the Americans have to pay another price for being sick and seek medical treatment. This price is their credit report that will be affected by medical debt, which may result in denial of employment, especially some professional jobs. It is definitely not debatable to ask that in such a rich country like America, why should people fall under some avoidable burdens?
The common sense laws and policies that intended to lift burdens on American shoulders should be considered and kept rather than be canceled. That means banning medical debt from credit reports can make much sense and help American people. Apparently, credit reports in the U.S can show the degree of the trustworthiness of the person, and based on such a report, the employers, lenders, and other facilities can determine where the person’s reputation stands financially. But should the medical debts that the person unwillingly falls under be a factor for such a determination?
This is another matter that should not be politicized and become another weapon to be aimed at Americans. Indeed, it should be taken under consideration as the Americans problem, and as the CEO and president of the Consumer Data Industry Association said regarding medical debt, “We believe that Congress is the only one who can act on this and determine whether or not it can be on the credit report.” Therefore, the U.S House of Representatives should write a bill to ban medical debt on the credit reports and vote on it.
However, such a ruling is not the end of the route as there are some states that have regulations banning or limiting the effect of medical debt on credit reports. Virginia legislators can also introduce a bill to ban medical debt from the credit reports of Virginians, which can open doors for middle and lower class who slip under medical debt to seek opportunities without the impact of a bad credit.
According to (CFPB), removing medial debt from credit reports would raise the credit scores by an average of 20 points for those who have medical debt on their reports. However, as Virginia is approaching a state election in November, the candidates for Virginia Delegates, Lieutenant Governor, and Governor should embrace and advocate for removing medical debt on the credit reports. Such an issue can become their agenda, and hence, a Virginia’s permanent law.
