The bill, by Sen. Monique Limon, will block healthcare providers and collection agencies from sharing a patient's medical debt with credit reporting agencies, protecting consumers.
Chi Chi Wu emphasized that no one chooses to get sick and then faces ruined credit as a result; therefore, states must adopt laws to protect consumers.
California lawmakers indicated that medical debt is not an accurate reflection of credit risk, pointing out that its inclusion can disproportionately harm individuals seeking employment or housing.
The new law will extend protections not just to credit reports but also to employment and tenant screening, ensuring broader consumer protection against medical debt.
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