Press Release  Governor Healey Moves to Ban Medical Debt from Consumer Credit Reports

Boston — Governor Maura Healey today announced new action to stop medical debt from being reported to consumer credit agencies in Massachusetts. This would prohibit licensed health care providers and debt collectors working on their behalf from reporting medical debt to credit bureaus, helping protect patients from long-term financial harm after an unexpected illness or medical emergency. This is the latest step in Governor Healey’s work to lower health care costs, protect patients and ensure residents are getting the care they need. 

"Getting sick is hard enough. It shouldn't ruin your credit," said Governor Maura Healey. "No one should have to worry that seeing a doctor, filling a prescription or taking their child to the emergency room will damage their financial future. Medical debt shouldn't make it harder to buy a home, rent an apartment or get a loan years after you've recovered and when you’re working hard to make your payments. This action will help protect patients while we continue our work to lower health care costs and ensure all Massachusetts residents can afford to get the care they need when they need it." 

"Medical debt can follow families long after they've recovered from an illness or emergency," said Lieutenant Governor Kim Driscoll. "We’re helping to ensure that one unexpected health care bill doesn't create years of financial hardship. It's another important step in our work to lower costs and make Massachusetts more affordable." 

“Today’s action by the Governor is a much needed first step in preventing disastrous ‘debt spirals,’” said Health & Human Services Secretary Kiame Mahaniah, MD, MBA. “Families in Massachusetts should be able to access the health care they need free from the worry that their credit could be ruined – potentially impacting their housing and other finances. Regardless of the federal government’s approach, in Massachusetts we’re committed to building a more affordable, more sustainable health care system that puts consumers first.” 

“No one should have to weigh the risk of a damaged credit score against the need to see a doctor, fill a prescription, or seek emergency care,” said Public Health Commissioner Robbie Goldstein, MD, PhD. “But for too many families, that fear of financial instability can be as debilitating as illness itself. Medical debt is more than an economic issue. It is a public health issue. This action will give families across the state something they all deserve – peace of mind to get the medical help they need without fear of sacrificing financial security.”  

"Health emergencies are stressful enough without the added worry of long-term financial fallout," said Senate President Karen E. Spilka (D-Ashland). "Making sure medical debt doesn't follow families around as they try to buy a home, finance a vehicle, or simply navigate life is critical. As the Senate continues our work to lower costs across the board, we stand with Governor Healey in protecting families from a terrible medical day turning into a financial burden that follows them for years." 

"No one should forego seeking health care out of fear of what it will cost and having to choose between paying a medical bill and paying for groceries, rent, or car insurance,” said Senator Cindy F. Friedman, Senate Chair of the Joint Committee Health Care Financing. “While there is so much more we can and should do to increase access and affordability in health care, prohibiting medical debt from being reported to credit bureaus is a good starting point."  

“Patients should never be forced to choose between protecting their health and protecting their financial stability,” said Representative John Lawn (D-Watertown), House Chair of the Joint Committee on Health Care Financing. “The burden of medical debt falls disproportionately on communities of color, further deepening health inequities and wealth inequities. I applaud Governor Healey for her leadership while the federal government retreats from its responsibility to protect patients and consumers. In Massachusetts, we continue to take action to make health care more affordable.”  

The Department of Public Health (DPH) developed the proposed regulations and all 23 of the Department’s licensing boards voted to advance them for public comment. The Department is now accepting written public comments on the proposed regulations and will hold public hearings on July 27 and 28 before finalizing the rules. After these hearings, the Department will evaluate all comments received and finalize the proposed regulation. 

Medical debt can have long-lasting consequences that extend well beyond a hospital bill. A serious illness, cancer diagnosis, complicated pregnancy or trip to the emergency room can leave people with bills they never anticipated and often cannot afford. When medical debt appears on a consumer credit report, it can make it harder to buy a home, rent an apartment, finance a car or qualify for a loan, even for people who have health insurance and are working to pay their bills. 

Unlike most forms of consumer debt, medical debt is often unavoidable. No one chooses to get sick, be diagnosed with cancer or take their child to the emergency room. These proposed regulations recognize that patients shouldn't face years of financial consequences simply because they needed medical care. 

"Medical debt isn’t a choice, it’s unforeseen and is not a reliable predictor of credit risk so it has no place on credit reports. We commend Governor Healey for taking decisive action to ban credit reporting of medical debt in Massachusetts," said Jennifer Lemmerman, Executive Director of Health Care for All. "We hear regularly on our HelpLine from patients struggling with medical bills they can’t pay or who avoid care altogether out of fear of financial ruin.  This ban will protect people across the Commonwealth who are struggling with medical debt. We are committed to building on this important step to continue to further help all those facing the unfair burden of medical debt."

Today’s action builds on Governor Healey’s broader efforts to make health care more affordable for Massachusetts residents. While this action protects families from some of the financial fallout of medical debt, the administration is also pursuing reforms that reduce the health care costs that can lead to that debt in the first place. 

To address high health care costs, Governor Healey became the first Massachusetts Governor to cap co-pays and deductibles to limit out of pocket costs. She eliminated prior authorization requirements for routine and essential health care, including cancer scans and medications for chronic conditions like asthma, diabetes and heart disease. And she invested the most state funding in the country to protect 270,000 residents from significant health insurance cost increases after President Trump decided not to extend Affordable Care Act premium tax credits. Additionally, the Governor’s Health Care Affordability Working Group continues to focus on additional ways to lower health care costs and improve access to care across Massachusetts.   

Governor Healey first pledged to take this action to ban medical debt from being reported to credit agencies in her State of the Commonwealth address. 

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