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HD 141

An Act relative to medical debt exclusion from creditor reports

194th Legislature (2025-2026) Introduced by Carlos González and 1 co-sponsor

Massachusetts bill prohibits credit agencies from reporting medical debt on consumer credit reports, shielding patients from debt's impact on creditworthiness and lending access.

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Bill Summary · HD 141

Legislative bill overview

HD 141 would prohibit consumer credit reporting agencies from including medical debt on credit reports or considering it in credit scoring calculations. The bill aims to prevent medical debt from negatively affecting consumers' creditworthiness and access to credit, treating medical debt differently from other consumer debts.

Why is this important

Medical debt is the leading cause of personal bankruptcy in the United States, and many individuals incur it due to circumstances beyond their control (serious illness, accidents, inadequate insurance). Removing medical debt from credit reports could improve credit scores for millions and reduce barriers to accessing housing, loans, and employment for those facing medical hardship.

Potential points of contention

  • Lender concerns: Credit companies argue medical debt is predictive of repayment risk and that removing it from assessments could increase lending costs and default rates, potentially raising interest rates for all consumers
  • Implementation scope: Unclear whether the bill covers only current medical debt or also past debts, and how it handles medical debt sold to collection agencies
  • Competitive disadvantage: Lenders operating in Massachusetts may face different risk profiles than out-of-state competitors, potentially affecting their willingness to lend in the state

Compiled from official sources — confirm details with the bill’s official record.

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