Ruling Sends Medical Debt Credit Reporting To States

(WKBN) – Following a federal judge’s ruling Tuesday that the Consumer Financial Protection Bureau (CFPB) does not have the authority to enact a Biden-era rule on medical bill reporting on credit reports, it could force individual states to take up the issue.

U.S. District Judge Sean Jordan, a 2019 appointee of President Donald Trump, said the rule by the previous administration not to include medical billing on credit reports exceeded the authority of the CFPB.

The rule was finalized in January.

Individual states can still pass laws to remove medical billing from credit reports, and 15 already have; however, Ohio and Pennsylvania are not among them. Ohio does having pending legislation addressing the issue. The Medical Debt Fairness Act is in committee.

In 2023, all three major credit reporting agencies agreed not to include past-due medical bills on credit reports that were under $500. That agreement still stands nationwide.