OLYMPIA – The Washington State Senate approved a measure to remove medical debt from credit score reporting on a bipartisan vote Wednesday.
Senate Bill 5480, sponsored by Sen. Marcus Riccelli (D-Spokane), would protect consumers by prohibiting collection agencies and other entities from reporting medical debt to consumer credit agencies or bureaus.
“Folks in my district have concerns about rising costs, especially health care costs. The cost of treating chronic illness or an emergency room visit are overwhelming, forcing people into medical debt — the number one cause of bankruptcy in America,” Riccelli said. “Nearly one in three families in Washington have someone struggling with medical debt. No one chooses to get sick or have a medical emergency, but medical debt affects credit scores, which can make it difficult to get a car or home loan, rent an apartment, or find a job.”
A similar rule finalized in January by the Consumer Financial Protection Bureau has been paused. The legislation passed on Wednesday would give certainty to Washington consumers that medical debt will not adversely impact their ability to make important financial decisions.
“No one should have to endure financial ruin to seek life-saving care, especially when so many Washingtonians are struggling with affordability issues,” Riccelli said.
The bill now moves to the House of Representatives for consideration.
