Millions of Californians struggle with medical debt, which can damage their credit and make finding housing harder. The Biden administration wants to remove medical debt from credit reports, but the timing is unclear.
In the meantime, California lawmakers are pushing Senate Bill 1061 – which aims to do just that. If passed, the law could kick in as soon as January.
Democratic Senator Monique Limón, who represents Santa Barbara and Ventura counties, backs the bill which aims to shield consumers from the credit impact of medical debt. It’s passed the Assembly and is now headed to the Senate.
Recent amendments weakened the bill by excluding medical credit cards and specialty loans. But Limón is still determined to push it forward, viewing it as essential relief.
Supporters like Attorney General Rob Bonta and health advocates, argue that medical debt often stems from uncontrollable circumstances and billing errors. They say California must act now, especially with federal efforts still uncertain. The bill would align California with states, like Colorado and New York, which have already taken similar steps to protect consumers.
Vice President Kamala Harris, the Democratic presidential nominee, has promised to enhance medical debt relief by including debt forgiveness. In a recent speech in North Carolina, she encouraged hospitals to forgive patient debt in exchange for Medicaid funds.
