Measure introduced in New York Legislature would prohibit medical debt from being collected by credit reporting agencies

ALBANY, NY- A measure has been passed in the New York State Legislature that would essentially halt hospitals and health care providers from reporting medical debt to credit agencies.

Pending final signature from Governor Kathy Hochul, the bill would stop medical debt from being collected by credit reporting agencies.

If signed, New York would become the second state in the nation behind Colorado to pass such legislation. The bill would also prohibit medical debt from being included in a credit report.

It’s reported this legislation would impact the lives of over 700,000 New Yorkers who had medical debt collections on their credit report as of February last-year.

The bill would take effect immediately, if Governor Hochul gives it a final stamp of approval.

Image via New York State Government.