Biden Administration’s Actions on Medical Debt a Critical Step to Ensure the Success of Families

(BOSTON, MA) – Today, the Biden administration issued new guidance to alleviate the burden that medical debt plays on the lives of one in three people. Today’s action will ensure that people are aware of their rights and financial assistance available when faced with medical debt. It will also eliminate medical debt as an underwriting factor when deciding the credit worthiness of people applying for a number of government-backed loan programs including those for to help people buy homes and start small businesses. The directive will help veterans by making medical debt forgiveness easier and ceasing the credit reporting of any medical debt related to care under Veterans Affairs. It will also hold providers accountable by reviewing their debt collection practices and using this information when making government funding decisions and enforcing the violations of bad actors. 

Statement of Community Catalyst Executive Director Emily Stewart in response to the Biden administration’s actions on medical debt:   

“An unexpected medical emergency is hard enough on a family without having the debt incurred ripple through a person’s life. Getting sick should never stand in the way of getting a mortgage, a small business loan or a job. We are encouraged by today’s announcement, as well as actions the administration has taken over the last two years to ease the financial burden of obtaining quality health coverage and care. Putting an end to the medical debt penalty is another good step on the way to ensuring that families are able to access affordable health care and affordable credit. Together, these actions are a positive step and we look forward to working with the Biden administration on additional policies to get relief to millions of families.” 

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About Community Catalyst
Community Catalyst is a leading non-profit national health advocacy organization dedicated to advancing a movement for health equity and justice. We partner with local, state and national advocates to leverage and build power so all people can influence decisions that affect their health. Health systems will not be accountable to people without a fully engaged and organized community voice. That’s why we work every day to ensure people’s interests are represented wherever important decisions about health and health care are made: in communities, state houses and on Capitol Hill.