California Gov. Gavin Newsom is now considering a bill that would block credit agencies from reporting on medical debt. The proposal passed the Legislature on Aug. 28.
Senate Bill 1061, introduced by Sen. Monique Limón, would prevent medical debt from appearing on credit reports and from being considered by parties determining the creditworthiness of applicants.
According to the bill, such a measure is needed to protect Californians against what the senator described as burdensome consequences of medical bills that some cannot afford to pay.
“Removing medical debt from consumer credit reports will improve the lives of millions of Californians dealing with purported past-due medical expenses,” Limón wrote in a legislative analysis. “The bill will help to lift the credit scores of people who have been inaccurately and unfairly saddled with medical debts on their credit reports, opening opportunities for access to healthier financial products, better housing, and more employment opportunities.”…