DELAWARE - A new law took effect in the first state today that says medical debt cannot be included on consumer credit reports anymore.
State officials say this is a major step forward in protecting Delawareans against long-term financial consequences of illnesses and injuries.
"When we remove barriers like medical debt from the equation, we strengthen Delaware's families, communities, and economy," said Governor Matt Meyer. "With this new law now in effect, we're helping thousands of Delawareans breathe a little easier."
Senate Bill 156 passed the general assembly with unanimous support and was signed into law by the governor last July.
Also in July, Governor Meyer announced a partnership between the first state and national nonprofit Undue Medical Debt to leverage $500,000 of state funds to eliminate up to $50 million in medical debt for an estimated 17,000 or more Delawareans. Eligible Delaware residents will be receiving letters in the coming weeks to inform them their debt has been eliminated.
State officials say to qualify for medical debt elimination, residents must have an annual household income at or below 400% of the federal poverty level, which is about $100,000 for a family of three, or have medical debt that equals 5% or more of their annual household income.