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Hearing on bill to bar medical debt from credit reports draws split testimony from advocates, landlords and banks
Summary
At a "hearing only" on HB 10-51, consumer advocates and nonprofits urged banning medical debt reporting to consumer bureaus; landlords, bankers and hospitals opposed a blanket prohibition and urged alternatives such as improved payment-plan transparency. No committee vote was taken today.
The Financial Institutions Committee held a hearing on House Bill 10-51, a proposal to prohibit health care providers from furnishing medical-debt information to consumer reporting agencies. Representative Summers, sponsor of the bill, said the measure aims to prevent medical debt—s unique, often involuntary burden from continuing to block access to housing, jobs and credit.
Supporters included Sam Sneidman of United Way Central Indiana, Erin Macy (consumer-research testimony) and the Indiana Minority Health Coalition. They argued that medical debt typically results from emergencies, is often inaccurate or inflated, and can block employment, housing and other opportunities. Sneidman said the bill builds on voluntary actions by credit bureaus to exclude small, recent medical debts, and urged statutory protection to prevent backsliding.
Opponents included Brian Spaulding (Indiana Apartment Association), Dax Denton (Indiana Bankers Association), Luke McNamee (Indiana Hospital Association) and Trevor Vance (Consumer Data Industry Association). Landlords said access to full credit-file information helps them assess rental risk and avoid placing residents in housing they cannot afford; bankers warned lenders need an accurate liability picture to manage credit risk; hospitals said they are pursuing alternatives such as clearer payment plans, charity-care transparency and other reforms.
Credit-industry counsel warned that federal law (the Fair Credit Reporting Act) and recent interpretive guidance may limit the ability of states to prohibit reporting and advised coordination with federal rules. Witnesses from both sides suggested less sweeping options: carve-outs, better hospital-disclosed payment plans and limits on garnishment or liens.
Representative Summers closed by urging the committee to move the bill forward in a future meeting; committee leadership treated the day as a hearing-only event to gather stakeholder views. No committee vote was taken.
Why it matters: Medical-debt reporting affects credit scores and access to housing and credit for thousands of Hoosiers. Lawmakers must weigh consumer consequences against landlords— and lenders— need for risk information and federal preemption risks.
What—s next: Sponsors and stakeholders signaled continued negotiation; committee members suggested follow-up research on states that limit medical debt reporting and on the CFPB—s recent actions.
