Equifax, Experian and TransUnion announced Friday that they will remove nearly 70% of medical debt listed on consumer credit reports.
"Effective July 1, 2022, paid medical collection debt will no longer be included on consumer credit reports," the credit bureaus said in a joint statement.
The credit bureaus are also giving consumers a year to address medical debt before it appears on a credit report. Previously, consumers had six months to resolve an unpaid debt before it was reported.
Starting in 2023, Equifax, Experian and TransUnion will also no longer include medical collection debt under at least $500 on credit reports.
“Medical collections debt often arises from unforeseen medical circumstances. These changes are another step we’re taking together to help people across the United States focus on their financial and personal wellbeing,” the CEOs of the three credit bureaus said in a statement.
The changes could provide a boost to credit scores for many Americans.
Nearly 1 in 10 Americans carry medical debt over $250, according to a study from the Kaiser Family Foundation.