Oregonians can recover both physically and financially after major medical care with protections in a bill passed in the Oregon Senate today. Senate Bill 605 stops medical debt from going on your credit report.
“One big hospital bill can wreck your finances, even if you’re chipping away at the debt over time,” said the bill’s chief sponsor Wlnsvey Campos (D – Beaverton & Aloha). “It should not stop you from qualifying for a car loan or getting a good interest rate on a mortgage.”
Under Senate Bill 605, medical service providers—like hospitals and clinics—are prohibited from notifying consumer reporting agencies that you owe money for your care or how much. The reporting agencies also are banned from including in your report any amounts they know or should know are medical debts.
Consumer reporting agencies collect information on your credit history, like how you pay your bills or if you filed for bankruptcy. Other businesses use that information to decide whether to loan you money, give you credit, offer you insurance, or rent you a home. Some employers use credit reports in hiring decisions. Your credit history also affects how much you will have to pay to borrow money.
“Bouncing back from a serious illness is hard enough,” said Senator Deb Patterson (D – Salem), chair of the Senate Health Care Committee. “We’re stopping that experience from dimming the financial future of responsible borrowers.”
Credit cards used for health care still can be included in credit reports, unless the card was issued specifically to pay medical services. Violations of the new law would be subject to lawsuits as unlawful trade practices.
Oregon Senate Democrats were joined by two Republicans in supporting Senate Bill 605. It passed 18 to 10 and goes to the House of Representatives.
