Legislation to Ensure Medical Debt Does Not Hurt Consumer Credit Scores Heads to the Governor

(SACRAMENTO) – Legislation authored by Senator Monique Limón to ensure medical debt does not hurt your credit score, is headed to the Governor for consideration. The bill sponsored by Attorney General Rob Bonta, California Nurses Association, Health Access California, Consumer Federation of America, California Public Interest Research Group (CALPIRG), the National Consumer Law Center, and the California Low-Income Consumer Coalition passed out of the Senate 31 - 8 with broad support in both houses. 

“Medical debt is a pervasive issue across the United States. For people with significant medical needs, medical debt can build up over time causing patients distress and worsening their health,” said Senator Monique Limón. “ It is time that California protects consumers from the disastrous effects of medical debt and signs SB 1061 into law.” 

“When someone is scared and in pain, the last thing they should think about is whether seeking care will take away their ability to buy a house or land a job. Unfortunately, this is the experience of far too many Californians,” said Attorney General Rob Bonta. “There is no need for medical debt to appear on credit reports. We know it is not a reliable indicator of financial risk and it continuously prevents consumers from essential economic opportunities. With SB 1061, California can put a stop to this unnecessary and outdated practice.”

Recently Vice President Kamala Harris announced that the Consumer Financial Protection Bureau would move to prohibit medical bills from being included on credit reports, but this proposed rule does not go into effect right away. SB 1061 would provide California consumers with relief starting on January 1, 2025. California has the opportunity to join 7 other states including Colorado and New York, that have passed laws that prohibit medical debt from appearing on credit reports. 

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Monique Limón represents the 19th Senate District, which includes Santa Barbara, Ventura, Goleta, Buellton, Carpinteria, Guadalupe, Lompoc, Santa Maria, Solvang, Camarillo, Fillmore, Ojai, Oxnard, Santa Paula, and Port Hueneme. She currently serves as the Chair of the Senate Democratic Caucus and as Chair of the Senate Banking and Financial Institutions Committee.