(RepublicanReport.org) – While May economics reports show inflation decreasing to 3.3% annually and the stock market at an all-time high, many Americans are still struggling to pay their bills. Recently, the Biden administration made a move to help relieve that burden by ensuring that some debts will not negatively affect families’ ability to move forward financially.
On June 11, Vice President Kamala Harris announced new action on medical debt. She said over 100 million people in America “struggle with medical debt” largely through no fault of their own. Harris explained that falling behind on paying that debt negatively affects credit scores, which makes it harder for individuals and families to get loans for a home, business, or car. So, the Biden administration making a change. Soon, medical debt will no longer be able to count against your credit score.
The vice president said that because of the change, millions of citizens will see their credit scores increase by an average of 20 points. Harris said that means “every year an estimated 22,000 more American families” will be able to get a mortgage to buy a home. She indicated that this issue has been a longtime passion of hers, stemming back to her time as California’s attorney general.
The VP called on states, cities, and hospitals to follow the administration’s example of relieving medical debt. Since 2021, the Biden administration has forgiven more than “$650 million so far,” with $7 billion more in upcoming medical debt forgiveness.
Some experts believe the rule change is a good move, considering medical debt is among the hardest to collect. However, others don’t think it’s such a great idea. They believe relieving medical debt could lead to doctors requiring upfront payment for services, negatively affecting low-income patients in the long run. However, Johns Hopkins University Dr. Ge Bai said, “it will be great news for patients” in the short term.
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