Instances of Medical Debt on Consumer Credit Reports Drop, but Patient Advocates Call for More Action 

By Consumers for Quality Care, on May 22, 2024

The number of consumers with medical debt on their credit reports has dropped since 2022, but millions of consumers still have debt on their files, according to The New York Times.  

Two years ago, the three major credit reporting agencies – Equifax, Experian, and TransUnion – took voluntary measures to remove consumer medical debt below $500 from credit reports. Since then, the amount of consumers with unpaid medical bills on their credit reports has decreased from 14 percent in March 2022 to 5 percent in June 2023. As a result, millions have seen their credit scores increase. 

While these changes are steps in the right direction, 15 million consumers still have medical debt on their credit reports. Many of these consumers are in low-income areas, as well as in Southern states that have not expanded Medicaid. Rohit Chopra, Director of the Consumer Financial Protection Bureau (CFPB), has said the agency is considering eliminating all medical debt from consumer credit reports. Only two states, Colorado and New York, have enacted laws to that effect. Advocates say that wiping medical debt from credit reports would allow millions of consumers to qualify for loans, rent apartments, or obtain employment.  

Medical debt should not hamper consumers from living their lives. CQC applauds these efforts and urges more collaboration from both public and private entities to continue to find ways to address the burden of medical debt on millions of Americans.