Senator John Kennedy (R-La.) introduced the Protecting Americans from Treatment-related Credit Harm (PATCH) Act on May 21, which would prohibit credit reporting agencies from including medical debt on consumer credit reports.
The proposed legislation addresses concerns that medical debt is harming Americans’ financial standing in ways that differ from other types of loans. According to Kennedy, “Fair-minded Americans know medical debt is different from a mortgage or a car loan. Patients don’t choose to get sick, and they don’t get to shop around for the best price from the back of an ambulance, either. Medical debt is gutting the American people like a fish, and my bill will make sure this unfair debt doesn’t appear on any American’s credit report.”
Medical debt affects one in three American households and can lead to lower credit scores for many patients. As a result, those with medical debts may face higher interest rates and greater challenges when seeking housing, employment, or affordable insurance coverage. The PATCH Act would still allow agencies to collect general information about medical debts but would prevent them from disclosing this information on consumer reports.
Supporters of the bill point out that Americans with medical debt are just as likely as others to repay their loans in full. Additionally, roughly 80% of medical bills contain errors and such debts are disputed at three times the rate of credit card debts.
Kennedy holds top Republican positions on subcommittees for energy and water development and economic policy; he also serves on Senate committees for appropriations, banking, budget and judiciary; contributes as an adjunct professor; has authored books and articles on Constitutional law; earned degrees including magna cum laude honors; served as executive editor of the Virginia Law Review; and was president of his senior class at Vanderbilt University—all according to the official website.
The full text of the PATCH Act is available online.
