New law will keep medical debt off credit reports

STATE HOUSE – Legislation sponsored by Rep. Mary Ann Shallcross Smith and Sen. Melissa A. Murray to protect Rhode Islanders from credit problems resulting from medical debts has been signed into law.

The legislation (2024-S 2709A), 2024-H 7103A), which Gov. Dan McKee signed June 24 following Assembly passage June 11, will prohibit debt collectors from reporting all medical debt to credit bureaus. It also sets rules for communication with consumers, false and misleading representation by debt collectors and a prohibition against collections during insurance appeals. The bill will take effect Jan. 1.

“Medical debt is a growing and persistent problem that so many of our friends and family consistently face,” said Representative Shallcross Smith (D-Dist. 46, Lincoln, Pawtucket). “Unlike other types of debt, where people spend beyond their means, medical debt occurs because people have the misfortune of getting sick. This bill looks to provide compassion and relief to Rhode Islanders by instituting common-sense reform.”

The consumer-protection bill was included in the Rhode Island HEALTH initiative (Holistic Enhancement and Access Legislation for Total Health) put forward by Senate leaders to improve health care access and affordability in Rhode Island.

“In a recent survey by healthcare.com, all living generations reported that medical debts had harmed their credit scores, with millennials reporting the highest incidence, at 52 percent. Medical debts have significant long-term financial consequences, preventing individuals from getting home loans or other credit they need and causing some to make harmful sacrifices such as not paying rent or utilities or buying food or medicine. The stress they cause can exacerbate a person’s health problems further,” said Senator Murray (D-Dist. 24, Woonsocket, North Smithfield). “This bill is a measure to prevent medical debt from sending Rhode Islanders into a financial downward spiral for something over which they had no control.”

Medical bills are among the top reasons underlying bankruptcy among Americans. A 2019 National Institute of Health study found that 66.5% of bankruptcy filers who responded indicated that medical expenses or problems contributed to their bankruptcy.

 

 

A key report shows wholesale inflation slowed last month. The July Producer Price Index shows a rise of zero-point-one percent. The PPI measures prices that businesses receive for goods and services. Economists had been expecting a slightly higher increase, according to a survey by the Wall Street Journal.        Over one-point-three million people tuned into Elon Musk's conversation with former President Trump on X last night. Some technical issues delayed the conversation, but the pair still spoke for over two hours. They discussed the attempted assassination of Trump in Pennsylvania, immigration, Russian President Vladimir Putin, the threat of global warming, and more.        Voters are heading to the polls for primary elections in Connecticut, Minnesota, Vermont, and Wisconsin today. In Minnesota, progressive Congresswoman Ilhan Omar will defend her seat against former Minneapolis City Council member Don Samuels. The contest comes after two other members of the so-called progressive "Squad," Jamaal Bowman and Cori Bush, lost their Democratic primaries this cycle.        Tropical Storm Ernesto isn't expected to hit the U.S. mainland as it heads up the Atlantic Ocean. Current forecasts show the storm will bring heavy rain and flooding to Puerto Rico and Virgin Islands today. The National Hurricane Center says Ernesto will then head northward and into the Atlantic.        A former Colorado clerk is facing up to 22 years in prison for election tampering. Tina Peters was convicted yesterday and will be sentenced in October. Prosecutors argued she let an unauthorized person access Mesa County's voting equipment in 2021 and make a copy of hard drives, as well as pictures of passwords, and then tried to cover it up.        U.S. gymnast Jordan Chiles will not have her appeal heard by the Court of Arbitration for Sport. On Sunday, the International Olympic Committee said it would take away her bronze medal because of a scoring error. Monday, USA Gymnastics said in a statement that it was notified that CAS rules don't allow for an arbitral award to be reconsidered.