SPRINGFIELD, Ill. (WAND) — The Illinois Senate passed a plan Thursday to ban consumer reporting agencies from including medical debt in your credit reports.
Lawmakers on both sides of the aisle believe medical debt should not be a barrier to financial stability.
Sen. Steve Stadelman (D-Rockford) said his legislation will ensure people can no longer be penalized if they struggle to pay their healthcare bills.
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Roughly 20% of US households report that they have medical debt, according to the Consumer Financial Protection Bureau.Â
"Lower credit scores make it hard for people to rent an apartment, secure a car loan or get a job," Stadelman said. "That makes it even harder for someone to pay down those medical bills. Research has shown that medical debt is not an accurate reflection of credit risk or someone's ability to pay that money back."
New York and Colorado have passed similar plans to help ensure financial equality.
Senate Bill 2933 passed unanimously out of the Senate Thursday. The proposal will now move to the House for further consideration.Â
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