Illinois proposal could prohibit inclusion of medical debt in credit reporting

SPRINGFIELD, Ill. (WAND) — The Illinois Senate could pass a plan this week to prohibit consumer reporting agencies from including medical debt in credit reports.

Sponsors told reporters Wednesday that medical debt should not be a barrier to financial stability or access to credit opportunities.

Sen. Steve Stadelman (D-Rockford) said his legislation would ensure people are not unfairly penalized for needing medical care and struggling to pay healthcare costs.

"This legislation, I want to stress, does not mean consumers don't have to pay that medical debt and their medical bills," Stadelman said. "I just believe medical debt is different than other debt. It's spontaneous."

Roughly 20% of US households report that they have medical debt, according to the Consumer Financial Protection Bureau.

New York and Colorado have passed similar plans to help ensure financial equity. Advocates said no one should have to choose between their medical health and financial health.

"Being a cancer survivor, everything for me went from cancer once, cancer twice and a brain injury," said Springfield resident Kimberly Moore. "That's medical debt after medical debt after medical. This bill will definitely help. I have a lot of medical debt on my credit report."

Senate Bill 2933 passed out of the Senate Judiciary Committee on a 5-2 vote on March 13. Stadelman filed an amendment for the proposal that received unanimous support from the Senate Judiciary Committee Wednesday morning.

The deadline to pass substantive Senate bills out of the chamber is Friday.