New York Bans Reporting of Medical Debt to Credit Agencies

Governor Kathy Hochul signs law immediately prohibiting hospitals, healthcare providers, and credit agencies from reporting or collecting information on medical debt.

• New York Governor Kathy Hochul has signed a bill into law that bans hospitals and healthcare providers from reporting medical debt to credit agencies.
• The law also prohibits credit agencies from collecting information about or reporting medical debt.
• New York is the second state after Colorado to enact such a law, and a similar nationwide measure is being considered by the federal Consumer Financial Protection Bureau.
• The law will not apply to medical debt that is charged to a credit card, unless the card was issued specifically for health services, and it doesn't apply to out-of-state healthcare providers.
• More than 740,000 New Yorkers had unpaid medical debt owed to collection agencies on their credit reports as of February 2022, according to a study by the Urban Institute.

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