[Congressional Record (Bound Edition), Volume 155 (2009), Part 15]
[Extensions of Remarks]
[Page 20498]
[From the U.S. Government Publishing Office, www.gpo.gov]




        INTRODUCTION OF THE ``MEDICAL DEBT RELIEF ACT OF 2009''

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                          HON. MARY JO KILROY

                                of ohio

                    in the house of representatives

                        Thursday, July 30, 2009

  Ms. KILROY. Madam Speaker, today I introduce legislation, the 
``Medical Debt Relief Act of 2009,'' which would protect those hard-
working Americans who play by the rules, pay or settle their medical 
debts, yet find their economic well-being and their credit scores 
adversely affected for years due to medical debt, large or small, that 
has gone to collection.
  The ``Medical Debt Relief Act of 2009'' would prohibit all consumer 
credit agencies and creditors from using paid off or settled medical 
debt collection in assessing a consumer's creditworthiness.
  Medical debt is unique. Americans don't choose when accidents happen 
or when illness strikes. Medical debt collection issues affect both 
insured and uninsured.
  According to credit evaluators, medical debt collections are more 
likely to be in dispute, inconsistently reported, and of questionable 
value in predicting future payment performance because it is atypical 
and non-predictive.
  Nevertheless, medical debt that has been completely paid off or 
settled can significantly damage a consumer's credit score for years. 
As a result, consumers can be denied credit or pay higher interest 
rates when buying a home or obtaining a credit card.
  The issue of medical debt affects millions. In fact, according to the 
Commonwealth Fund, medical bill problems or accrued medical debt 
affects roughly 72 million working-age adults in American. For 2007, 28 
million working-age American adults were contacted by a collection 
agency for unpaid medical bills.

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