Millions of Californians have medical debt. It wouldn’t hurt your credit under proposed rules

About 4 in 10 Californians are carrying medical debt. Lawmakers are advancing a bill that would prevent that debt from affecting credit scores

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By Ana B. Ibarra, CalMatters

Medical debt weighs heavily on the lives of millions of Californians. It can ding their credit scores and hurt their chances of landing a rental or securing a home mortgage.

Earlier this year, the Biden administration announced a proposal to stop medical debt from showing up on credit reports. That proposed rule is under consideration with an uncertain timeline.

California lawmakers are moving faster with a  similar measure that would take effect as soon as January if it becomes law.