Unpaid medical debt will no longer appear in New York residents’ credit reports under a bill signed into law by Gov. Kathy Hochul (D) yesterday, the Associated Press reported. The law prohibits credit agencies from collecting information about or reporting medical debt. The law also bans hospitals and health care providers in the state from reporting such debt to the agencies. New York is the second state after Colorado to enact such a law. A similar nationwide measure is being considered by the federal Consumer Financial Protection Bureau. The new law will take effect immediately. “No one should ever have to make a horrible choice between their physical health and their financial health,” Hochul said. The new law won't necessarily stop all medical debt from affecting New Yorkers' credit scores. It won’t apply to debt that is charged to a credit card, unless the card was issued specifically for health services, and it doesn't apply to out-of-state health care providers.
