Starting on July 1, 2022, all three credit bureaus will remove all paid medical debt from your credit report. Erasing your medical history can increase your credit score. This will allow you to finance with better interest rates.
Moving forward, for those who owe less than $500 dollars, that debt won’t be reported at all. Leslie Tayne, a financial expert and attorney says, this is not the same as medical debt cancellation.
You will still be required to pay whatever money is owed; however, it won’t appear on your credit report.
“Credits are not required to report to all three. So you might see a medical debt reported on one credit report and not the others. it is common to see mistakes on credit reports by medical debt. it could be a lot of reasons for that so be your own advocate,” said Tayne.
Something else to note is that consumers will have up to one year as opposed to six months to pay or dispute outstanding medical debt before it gets reported.
Lastly, everyone is entitled to obtain one free copy of their credit report from all three bureaus each year. The credit bureaus are Experian, Equifax, and TransUnion.