Medical debt: how it can affect your credit score

The Medical Debt De-Weaponization Act aims to protect consumers from collectors and to ensure that hospitals provide the charitable care they should.

GREENSBORO, North Carolina – Democrats versus Republicans. That’s what you normally hear, but there’s a problem that North Carolina lawmakers are working together to solve the medical debt problem. This is the kind of debt that can ruin a family.

According to the North Carolina Treasurer’s Office, 20% of people in the triad alone have medical debt in collection.

“This is the one that no matter your Democratic or Republican affiliation, something is wrong, it’s not enough to talk about the problem, eventually someone has to fix it, and that’s what we’re trying to do with the de – arms bill,” said North Carolina State Treasurer Dale Folwell.

It’s called the Medical Debt De-Weaponization Act. The idea is that unnecessary medical debt is a weapon used against consumers.
The legislation protects consumers from creditors and purchasers of medical debt and reduces heavy medical debt by ensuring hospitals provide the amount of charitable care they should.

Charitable hospital care is essential. A recent study found that in 2019, some North Carolina nonprofit hospitals billed poor patients $149.2 million who should have received free or reduced-cost care under the hospital’s own policies. ‘hospital.

When patients don’t receive care at a discount, medical debt is too high and their credit score is impacted.
When your credit is weak, it affects your life.

“What you pay for a cell phone, an apartment, insurance, interest rates, and now we find there are essential jobs in North Carolina that you shouldn’t apply for if you have bad credit “, said Folwell.

This medical debt bill was introduced in May. The Treasurer hopes there will be some sort of movement on this by the end of the year.