New Yorkers could see relief from medical debt if several national proposals move forward.
The Consumer Financial Protection Bureau proposed a new rule to eliminate medical debt from credit reports. Studies show medical debt does not predict whether a person can pay down a debt.
An Urban Institute report finds more than 740,000 New Yorkers have medical debt.
Ursula Rozum, health care campaign lead for the group Citizen Action of New York, said the change can remove the punitive aspects of medical debt.
“What we’re talking about is relief for the 15 million Americans that have medical debt,” Rozum pointed out. “As well as people who we know are skipping care or delaying care ’cause they’re scared of the debt and what impact it would have on their lives.”
Vice President Kamala Harris is supporting the bureau’s proposal while considering other ways to cancel medical debt. Congressional Republicans such as Rep. Mike Lawler, R-N.Y., oppose the proposed change. Several House GOP members signed a letter to the bureau saying its proposed rule can negatively affect credit access and affordability for all consumers.
New York passed legislation prohibiting medical debt from being reported to credit agencies but it has not stopped medical debt disparities.
Christine Chen Zinner, senior policy counsel for the advocacy group Americans for Financial Reform, said communities of color often have the highest medical debt rates for many reasons.
“Black and Latine families are more likely to have jobs without access to health insurance, and so that would drive up medical debt,” Zinner explained. “There’s also been disparate health treatments for these communities.”
Other causes for medical debt include growing facility fees. While New York passed legislation to reform the fees, studies show they are a bulk of what patients pay for. Between 2004 and 2021, facility fees grew 531%, surpassing professional fees for certain emergency department services.
Edwin is a reporter and producer in North Tonawanda, New York. He’s previously reported for the Niagara Gazette and the Ithaca Times. Edwin got an early start in radio interning for WBFO-88.7FM, NPR’s Buffalo affiliate. In 2018, he graduated from SUNY Buffalo State College with a B.A. in Journalism, and in 2022, graduated from Syracuse University with an M.S. in Communications.