Four things to know:
1. The rule prohibits lenders from considering medical information when making lending decisions and bans consumer reporting agencies from including medical debt information on credit reports and scores, according to a Jan. 7 news release from the agency.
2. The CFPB said medical debt is a poor predictor of a borrower’s ability to repay loans, noting that many consumers receive inaccurate bills or charges that should have been covered by insurance.
3. The rule is expected to remove approximately $49 billion in medical bills from about 15 million Americans’ credit reports. The CFPB also projects it will result in the approval of about 22,000 additional mortgages annually and raise credit scores by an average of 20 points for those affected.
4. The rule is effective 60 days following publication in the Federal Register.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.