A new bill that New York Governor Kathy Hochul signed into law on Wednesday will help thousands of New Yorkers who have medical debt.

New York State became only the second state in the country to pass a law that prohibits unpaid medical debt from impacting consumer credit reports.

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The new law prohibits credit agencies from collecting or reporting medical debt and it also bans hospitals and health care providers in New York State from reporting debt to credit agencies.



Also, the new law only applies to health care providers in New York State. If you have medical debt from a provider outside of New York, that could still impact your credit score.

Colorado is the only other state to prohibit medical debt from impacting your credit score.

There is currently a nationwide bill proposed that would expand this law across all 50 states, but it is still under review.

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