News Release


U.S. PIRG applauds Biden Administration’s actions on medical debt

For Immediate Release

Federal agencies to reduce or eliminate medical debt as a factor in loan programs

WASHINGTON --  Vice President Kamala Harris announced reforms Monday to reduce the impact of medical debt on Americans’ finances. Federal agencies will more effectively evaluate financial assistance, loan products, billing and debt collection practices related to medical expenses, and reduce or eliminate the use of medical debt in underwriting for federal loan programs. 

Patients experiencing problems with a financial product or service related to medical billing and collections are being directed to the Consumer Financial Protection Bureau (CFPB) to file a complaint

In response Mike Litt, U.S. PIRG’s Consumer Campaigns director, made the following statement:

“Because so many health issues are beyond our control, medically necessary debt on credit reports shouldn't just be limited -- it shouldn’t be reported or considered at all.

“We are glad to see the Biden-Harris Administration leading the way for government agencies to look at eliminating or reducing the impacts of medical debt. Opening the door for people with medical debt to apply for federal loans is a big deal. Next, the private sector should follow suit.” 

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