News outlets said debt relief would help people recover from the financial stress of the pandemic and cited data from the Kaiser Family Foundation that two-thirds of medical debt is the result of one-time or short-term medical expenses associated with an acute medical need. .
“After two years of the COVID-19 pandemic and a detailed review of the prevalence of medical claims on credit reports, the NCRA (National Credit Reporting Agencies) are making changes to help people focus on their personal well-being and recovery,” the post reads. says in the statement.
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As of July 1, 2022, paid medical bills will no longer be included in consumer credit reports. In addition, the time period before unpaid medical bills appear on a consumer’s report will be extended from 6 months to one year, giving consumers more time to work with insurance and/or health care providers to pay off their debt before as it will be reported in their reports. credit file. In the first half of 2023, agencies will also no longer include medical bills under $500 on credit reports.
An AffordableHealthInsurance.com survey found that more than half of insured Americans have unpaid medical debt. Bloomberg reported earlier this month.
This story first appeared in our sister publication, Crane’s Chicago business.