The Biden administration’s recent move to ban unpaid medical debt from appearing on credit reports is a big step forward for millions of Americans struggling to make ends meet. As of January 7, 2025, unpaid medical bills will no longer hold people back from getting a mortgage, car loan, or even a small business loan. This change, driven by the Consumer Financial Protection Bureau (CFPB), wipes $49 billion of medical debt off credit reports, giving 15 million Americans a fairer shot at financial stability.
As someone who works as a firefighter and EMT, I see firsthand how medical emergencies can change lives in an instant. A car accident, a heart attack, or an unexpected diagnosis doesn’t just come with emotional and physical pain it often comes with financial pain too. Many people end up with massive medical bills they can’t pay, and their credit suffers because of it. This new rule is going to help a lot of families by boosting credit scores and making it easier for people to get approved for loans. On average, credit scores are expected to rise by about 20 points, which could lead to thousands of additional mortgage approvals each year.
This is good news, and it’s about time we start recognizing that medical debt is not like other kinds of debt. Nobody chooses to get sick or injured, and a lot of medical bills include errors like overcharges or fees for services that were never even provided. It’s unfair to punish people for things out of their control.
But here’s the thing….While this move helps individuals, it’s not a fix for the bigger issue, our broken healthcare system. Medical debt doesn’t just disappear. Someone still has to pay the bills, and in most cases, that’s the hospitals and healthcare providers. These organizations rely on that money to pay their staff, keep the lights on, and buy the equipment needed to save lives. When patients can’t pay their bills, hospitals are left trying to fill the gap. This can lead to cuts in services or even hospital closures, especially in rural areas where resources are already stretched thin.
I’ve seen it happen. In my line of work, I’ve transported patients to hospitals that are understaffed and overworked. Nurses, doctors, and EMTs like me are doing everything we can to keep people safe, but the system is buckling under the pressure. This new rule might ease the burden on patients, but it’s not addressing the root cause, why healthcare costs are so high in the first place.
We need real reform. That means tackling the skyrocketing prices of medical procedures, prescription drugs, and insurance premiums. It means making healthcare more accessible and fair for everyone. The United States spends more on healthcare than most other countries, yet so many people are still drowning in medical debt. How is that acceptable?
Don’t get me wrong, I’m all for this rule. It’s going to give a lot of people a much needed break. But if we’re serious about fixing the problem, we need to look at the back end. How do we support the hospitals and clinics that are carrying this financial burden? How do we make sure healthcare workers are paid fairly and patients get the care they need without going broke?
So again this is not a cure. It’s a step in the right direction, but we’ve got a long way to go. Everyone deserves access to quality care without the fear of financial ruin, and it’s time we make that a reality.
