WA law wipes medical debt from credit reports

A new law in Washington will prevent medical debt from appearing on residents' credit reports, providing crucial financial relief for many. Approximately one-third of Washingtonians are affected by medical debt, with 60% unable to cover an unexpected $500 medical bill. Sen. Marcus Riccelli, a Democrat from Spokane, sponsored the legislation, which he claims can enhance credit scores by an average of 20 points. The law also prohibits unauthorized fees and limits debt collectors' contact with individuals.

Despite pushback from some lawmakers regarding financial transparency, the measure received bipartisan support, reflecting a widespread desire among Americans for reduced healthcare costs. Emily Brice of Northwest Health Law Advocates stressed the need for innovative policies to combat rising medical debt. This law will take effect on July 27, marking a significant step in consumer protection. The ruling highlights a growing trend among states to address the financial impacts of healthcare on residents.