WA law wipes medical debt from credit reports

Washington's new law shields residents from medical debt on credit reports, countering a recent federal ruling that permits such debts to linger. Approximately one-third of Washingtonians are affected by medical debt, with 60% unable to pay an unexpected $500 bill. The measure, sponsored by Sen. Marcus Riccelli, is expected to raise credit scores by an average of 20 points. It also prohibits unauthorized fees and limits debt collectors' contact methods, aiming to enhance consumer protections.

Despite opposition from some lawmakers who argue it obscures financial realities, the Washington Hospital Association endorsed the bill. Riccelli emphasized that the legislation reflects a bipartisan effort to reduce healthcare costs. Emily Brice of Northwest Health Law Advocates warned that federal actions could worsen the medical debt crisis in Washington. She called for innovative policy solutions to protect the state's healthcare safety net.