OLYMPIA – Bipartisan legislation to remove medical debt from credit score reporting in Washington state was signed into law by Gov. Bob Ferguson on Tuesday.

Senate Bill 5480, sponsored by Sen. Marcus Riccelli (D-Spokane), will protect Washington consumers by prohibiting collection agencies from reporting medical debt to credit agencies.

“One of the top concerns in my district is rising costs, especially when it comes to health care,” said Riccelli. “This bill will ensure that people in our state who have a medical emergency will be better protected from a credit rating change that can threaten basic needs like buying a car, renting an apartment, or even getting a job. No one should have to endure financial ruin to seek life-saving care, especially when so many people are struggling to afford the basics.”

A similar rule finalized in January by the Consumer Financial Protection Bureau was halted by the current federal administration. The federal rule on medical debt credit reporting was expected to improve the scores of 15 million people in the country by an average of 20 points.

“Medical debt isn’t a choice — it’s a consequence of rising health care costs,” said Adam Zarrin, director of state government affairs for the Leukemia & Lymphoma Society. “Thanks to Gov. Ferguson and Sen. Riccelli, thousands of Washingtonians can finally breathe easier, break free from crushing medical debt, and focus on their health and families.”

According to a study published by the Leukemia & Lymphoma Society, 6 in 10 Washington adults say they could not pay an unexpected $500 medical bill, and 30% of residents say they live in a household with medical debt, even with health insurance.

“I am thrilled the governor just signed this important bill into law. Getting sick shouldn’t affect your long-term financial wellbeing,” said Rep. Joe Timmons (D-Bellingham), sponsor of the House companion legislation. “This will help so many people across the state get back on their feet after one of the hardest points in their life.”

The bill will take effect July 27.