While some credit bureaus currently offer a grace period of up to 180 days before reporting medical debt, the process lacks transparency and can leave consumers in the dark about when their debt is reported. The Fair Medical Debt Reporting Act would:
- Delay the reporting of medical debt on a credit report by one year,
- Remove medical debt from an individual’s credit report if the debt is settled within one year, and
- Ensure patients have a detailed account of the medical bill before it is shared with a consumer reporting agency.