A bill is under consideration in the Oklahoma legislature that would prohibit certain medical debts from being reported to credit bureaus, preventing them from impacting consumers’ credit scores.
Driving the news: House Bill 1709, introduced by Rep. Forrest Bennett, a Democrat from Oklahoma City, aims to prevent creditors and debt collectors from reporting medical debt incurred for lifesaving and emergency care services to consumer reporting agencies. The bill, if passed, would take effect on November 1, 2025.
Key details:
- The bill originally sought to bar all medical debt from credit reports but was amended to limit this protection to debts arising from lifesaving and emergency care services rendered at an Oklahoma medical facility.
- Under the legislation:
- Creditors and debt collectors would be prohibited from reporting such medical debt.
- Consumer reporting agencies would be prohibited from including it on consumer credit reports.
- The bill defines lifesaving and emergency care services as medical or surgical care necessary to treat a potentially life-threatening condition or symptom.
- The definition of Oklahoma medical facility includes hospitals, nursing facilities, physician offices, home healthcare providers, and other licensed medical institutions.
The big picture: Oklahoma has one of the highest rates of medical debt in the nation, with nearly 20% of residents having medical bills in collections. This is well above the national average of 11.6%, according to the Urban Institute.
What’s next:
- The bill passed the Civil Judiciary Committee and now requires a Senate author before moving forward to the Judiciary and Public Safety Oversight Committee.
- At least nine other states have passed similar laws barring some medical debt from credit reports.
- The legislation aligns with a final rule from the Biden administration, originally set to take effect this month, that removes medical debt from credit reports nationwide.
