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Healey Proposes Rule to Bar Medical Debt From Credit Reports

The proposal would give the state Department of Public Health authority to enforce a reporting ban through licensure penalties.

Overview

  • The Healey administration filed the proposed Department of Public Health regulation on Tuesday to stop licensed health care providers and their collectors from reporting medical debt to consumer credit agencies.
  • The rule would let the state block reporting by providers and let regulators seek suspension or revocation of provider licenses for violations.
  • The department is accepting public comment and has scheduled hearings for July 27 and July 28 before officials review feedback and consider finalizing the rule.
  • Supporters say the change would protect consumers — especially low- and moderate-income families and Black residents who carry higher shares of medical debt — from long-term credit harm, while critics warn it does not lower out-of-pocket health costs.
  • The move would align Massachusetts with about 17 other states that limit medical-debt reporting, but it faces legal questions after a federal judge last year struck down a comparable national rule.