ICYMI: Vice President Kamala Harris Announced New Actions to Protect Consumers and Lessen the Burden of Medical Debt on Families

As part of the Administration's fight to help Americans deal with high costs, yesterday Vice President Kamala Harris announced new actions to protect consumers and ease the burden of medical debt, giving more American families the opportunity to thrive.

One-in-three adults in the United States have medical debt. It is now the largest source of debt in collections—more than credit cards, utilities, and auto loans combined in the United States. Vice President Harris's announcements included reforms to lessen the burden of medical debt, protect consumers, and open up new opportunities for Americans looking to buy a home or start a small business.

Read more about the announcement below.

CNN: Harris says White House will seek to ease Americans' medical debt burden
[Tami Luhby, 4/11/22]

The White House is seeking to help lessen Americans' medical debt burden, Vice President Kamala Harris announced Monday.

In its latest effort to help people deal with increased costs amid skyrocketing inflation, the White House laid out a four-point plan to help protect consumers. It builds on President Joe Biden's recent executive order on increasing access to affordable health care coverage. […]

"No one in our nation should have to go bankrupt just to get the health care they need," she said.

Bloomberg: White House Plans to Blunt Medical Debt for Veterans and Home Borrowers
[Justin Sink and Nancy Cook, 4/11/22]

Vice President Kamala Harris will announce new steps designed to reduce the cost of federal home loans for Americans saddled with medical debt and make it easier for veterans to have loans forgiven, as part of a White House push to help the millions facing unpaid health care bills.

The efforts will include a push within the federal government to stop considering medical debt when determining eligibility for grants and loans -- including in programs like the Department of Agriculture's $20 billion rural housing program. […]

The moves come as the White House has sought ways to reduce costs for Americans facing inflation that has skyrocketed during the coronavirus pandemic, leading to some of the highest price increases in four decades. The inflation spike prompted the Federal Reserve to begin hiking interest rates, resulting in higher costs for mortgages and consumer credit.

PBS News Hour: WATCH: Federal government to act against 'bad actors' in medical debt collection, Harris says
[News Desk, 4/11/22]

The federal government will be taking action against "bad actors" who break the law when attempting to collect medical debt, Vice President Kamala Harris said on Monday.

"Our administration is also taking action against the bad actors. The folks who violate consumers rights to force people to pay medical debt," Harris said during a speech announcing the new action to be taken by the Consumer Finance and Protection Bureau. [..]

For years, research has shown that medical debt is the most common cause of bankruptcy in the United States. Health experts have long pointed to the need to prevent poor health from ruining a person's financial wellbeing, and advocates had pushed for the Affordable Care Act as a means to do just that.

Yahoo! Finance: Health care: White House announces measures to reduce the burden of medical debt
[Adriana Belmonte, 4/11/22]

After recently overhauling a "glitch" in the Affordable Care Act (ACA), the Biden administration is now addressing another issue plaguing the American health care system: medical debt.

On Monday, Vice President Kamala Harris announced the administration's four-step plan aimed at increasing consumer protections for Americans billed for health care costs. […]

The report highlighted that Black and Hispanic individuals are more likely to have medical debt, along with young adults and low-income individuals.

Spectrum News: VP Harris announces actions to reduce burden of medical debt for Americans
[Rachel Tillman, 4/11/22]

The Biden-Harris administration on Monday announced a four-part plan to "ease the burden of medical debt" for American families, the White House said in a release, a move the administration hopes will give "more American families the opportunity to thrive."

Vice President Kamala Harris detailed the reforms alongside other members of the administration in a speech from Washington on Monday afternoon.

"I have met so many people in so many communities in our nation who are struggling with this burden, many of whom are managing an illness or an injury at the same time and who stay up at night, staring at the ceiling, wondering if they will ever be able to pay off their medical debt," Harris said. "No one in our nation should have to endure that."

MarketWatch: White House says it wants to make medical debt less of a threat to consumers' financial health: 'The system is out to get them'
[Andrew Keshner, 4/11/22]

The administration is asking federal agencies to erase medical debt as an underwriting factor in credit programs for certain consumer and small businesses whenever possible, the White House said Monday. […]

Meanwhile, the Department of Veteran Affairs is looking at its guidelines after taking other steps to curb medical debt reporting. The Small Business Administration is reviewing its lending programs to spot ways to pull medical debt out of the equation when it comes to accessing capital, the White House said.

"Credit scores essentially are supposed to measure how responsible you are with your money," Vice President Kamala Harris said Monday afternoon. "Having medical debt because you were sick or injured should not lower your credit score and make it more difficult to secure the help you need to get out of debt. It's not logical."