Unpaid Maine Medical Bills Will No Longer Appear on Your Credit

It's something that many of us have either had to deal with, or will have to deal with in our lifetimes. Of course we are talking about horrendously expensive medical debt.

Sure, there's insurance, which millions of Americans have, but it sometimes only covers a small fraction of medical debt that is incurred from routine office visits, specialists or operations.

So what happens when medical debt becomes so significant that it ends up going to a collection agency? Well, until recently, the debt was reported to the three major credit agencies after 90 days of no contact.

That is all about to change, and in a big way.

According to an article published by the Kennebec Journal, the Biden administration just announced a new measure that will prevent medical debt from being allowed on credit reports. This is huge news as oftentimes, the only adversely affecting people's credit is outstanding medical debt.

In addition to this announcement, it's also been reported that medical debt that already exists on American's credit reports will be removed. Now, this doesn't mean the debt is gone or paid in full, it simply means that it will no longer appear on credit reports.

However, this should help millions of Americans who were previously unable to secure mortgage, auto or personal loans to finally be able to get them. When it comes to just how much existing medical debt will be wiped off the credit bureaus, the KJ said the figure is around $49 billion currently affecting 15 million Americans.

Additionally, the Kennebec Journal reports that this move will likely allow upwards of 22,000 MORE mortgage approvals per year nationwide. That is an astonishing number and welcome news to millions of Americans burdened by their crippling medical debts.