Millions of Californians are dealing with medical debt, which can hurt their credit and make it harder to find housing. The Biden administration wants to remove medical debt from credit reports, but it’s unclear when that will happen.
Meanwhile, California lawmakers are pushing Senate Bill 1061, which aims to do the same thing. If the bill passes, it could become law as soon as January.
Democratic Senator Monique Limón, who represents Santa Barbara and Ventura counties, supports the bill. It’s designed to protect consumers from the negative effects of medical debt on their credit. The bill has already passed the Assembly and is now going to the Senate.
Recent changes to the bill removed protections for medical credit cards and specialty loans, weakening it. But Senator Limón is still committed to moving it forward, seeing it as crucial relief.
Supporters, including Attorney General Rob Bonta and health advocates, argue that medical debt often comes from unavoidable situations and billing mistakes. They believe California needs to act now, especially since federal efforts are still uncertain. The bill would put California in line with states like Colorado and New York, which have already taken similar steps.
Vice President Kamala Harris, the Democratic presidential nominee, has also promised to increase medical debt relief by including debt forgiveness. In a recent speech in North Carolina, she urged hospitals to forgive patient debt in exchange for Medicaid funds.