Massachusetts residents saddled with medical debt could be insulated from wrecked credit scores under pending regulations announced by Gov. Maura Healey. The proposal from the Department of Public Health would block licensed health care providers, as well as debt collectors working for them, from reporting medical debt to consumer credit agencies.

Regulations and Penalties

Providers that don’t comply could lose their license to practice, said Public Health Commissioner Robbie Goldstein. The proposal is tied to licensure, affecting both facility and professional licenses. If a provider reports medical debt, their license would be at risk.

Healey framed the proposed regulations as her administration’s latest attempt to tackle soaring health care costs. Medical debt can hinder residents’ ability to buy a home, rent an apartment, or secure loans. The governor emphasized that medical debt isn’t a sign of poor financial health but rather a result of unforeseen medical expenses.

Public Comment and Implementation

All 23 of DPH’s licensing boards have voted to advance the proposed regulations. The department is now seeking written public comments and will hold public hearings on July 27 and 28 before finalizing the rules. Healey hopes to see the regulations implemented as soon as possible.

A recent survey found that 13.5% of Massachusetts residents had family medical debt, with the majority incurring debt despite having insurance coverage. Over 140,000 residents are set to receive more than $170 million in direct debt relief through a partnership between the Atrius Health Equity Foundation and the Massachusetts Health and Hospital Association.

Original reporting: NBC10 Boston — read the source article.