Sen. Stadelman

SPRINGFIELD – State Senator Steve Stadelman is taking a significant step toward safeguarding consumers’ financial well-being by introducing legislation aimed at prohibiting consumer reporting agencies from including adverse information related to medical debt in credit reports.

“Medical debt should not serve as a barrier to financial stability and opportunity,” said Stadelman (D-Rockford). “No one should have to endure the added stress of damaged credit due to medical expenses beyond their control. This legislation is about ensuring fairness and equity for consumers, regardless of their health status.”

Senate Bill 2933 would prohibit a consumer reporting agency from making a credit report containing any adverse information about the consumer related to medical debt.

Medical debt is often incurred unexpectedly and can accumulate quickly, leading to financial strain and hardship for many Illinois residents. According to the Consumer Financial Protection Bureau, roughly 20% of U.S. households report that they have medical debt, and over $88 billion in unpaid medical bills show up on credit reports.

“The presence of medical debt is not an indicator of one’s ability to pay for something,” said Stadelman. “To ensure financial equity for Illinoisans, this bill will protect those struggling to pay for medical bills, and emphasize that medical debt must not be a barrier to success.”

Senate Bill 2933 passed the Senate Judiciary Committee on Tuesday and heads to the full Senate for further consideration.