Reps. Bacon, Perez introduce bill to help improve credit scores

U.S. Reps. Don Bacon (R-NE) and Marie Gluesenkamp Perez (D-WA) recently introduced bipartisan legislation that seeks to reverse federal law to report medical payments on credit reports.

Currently, medical debt negatively affects credit scores, but making payments on this debt does not improve credit scores. This bill, the Reporting Medical Debt Payments as Positive Consumer Credit Information Act of 2024 (H.R. 9890), will reverse those limitations in federal law by accepting medical payments positively to improve an individual’s credit score.

“Medical bills shouldn’t affect an individual’s credit score,” Bacon said. “I do not support individuals getting penalized for medical bills being paid through payment plans. Some medical bills can cost thousands of dollars, if not more. Healthcare is one of the most unaffordable insurances for individuals.”

It is designed to help Americans with debt build their credit. In addition, credit companies, health insurance, hospitals, and patients agree that this bill will help Americans by relieving medical expenses.

“If you’re working hard to pay off your medical bills, you should be able to see it reflected in your credit score,” Gluesenkamp Perez said. “Reporting positive progress on medical debt will help working families across Southwest Washington build credit for the future in spite of the financial strain of unexpected medical expenses.”

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