Biden administration issues rules to remove medical debt in credit ratings

The Biden administration in the U.S. has prevented credit rating agencies from taking into account medical debt, including hospital bills, when assessing an individual's credit status.

The U.S. Consumer Financial Protection Agency has issued a final rule requiring medical debt to be removed from its credit rating report.

The White House says the credit rating report of 15 million Americans lists $49 billion in medical debt, and the rules are expected to improve their credit scores by an average of 20 points.

He also explained that medical debt is sometimes inevitable because of complications, and sometimes it is claimed even if the patient has already paid or has not been treated, which is different from other types of debt.

Vice President Kamala Harris said no one should be sick or cut off from economic opportunities due to urgent medical conditions and that the rules would change the lives of millions of families needing loans.

However, the New York Times and others observed that the rule could be removed if Trump, who pledged to remove government regulations and abolish the Biden administration's policy, takes office.

Earlier, some House Republicans expressed grave concern about the rule that excludes medical debt from credit ratings, calling it an attempt to make the credit report less accurate.