Washington, D.C. Bans Medical Debt From Credit Reports

Legislation that prohibits a health care provider or debt collector from reporting medical debt to credit reporting agencies has become law in Washington, D.C.

The legislation became law without the signature of Mayor Muriel Bowser, who said she supported the medical debt provisions, but opposed some unrelated provisions.

Among other things, the law:

• Prohibits a health care provider or debt collector collecting on a medical debt from:
• Garnishing of wages for those patients with a household income below 500% of the federal poverty level.
• Filing of property lien against a patient’s primary residence.
• Engaging in medical debt collection until 180 days after the consumer receives the first posted medical bill. There must be at least 90 days’ notice before collection begins.