Medical debt shouldn’t kill credit scores, VP Kamala Harris says in Charlotte
It doesn’t make sense that medical debt is used to decide someone’s credit score, Kamala Harris said in a visit to Charlotte on Wednesday.
Speaking to a crowd at Johnson C. Smith University, the fourth stop of her nationwide Economic Opportunity Tour, Harris discussed a new proposal from the Biden administration to prohibit medical bills from being included on credit reports for more than 15 million Americans. The White House also suggested steps states could take to reduce medical debt.
Harris was joined by Gov. Roy Cooper, Charlotte Mayor Vi Lyles and federal officials. After the speakers addressed the crowd, Harris began a moderated discussion with actor Michael Ealy and political commentator and former South Carolina State Rep. Bakari Sellers.
One Democratic campaign consultant told The Charlotte Observer the Biden-Harris campaign is focusing on a major issue for Americans, but the N.C. GOP called the tour focusing on economic opportunity “curious.”
Medical debt’s effects
Medical debt, Harris said, comes up for most people because of an unplanned medical emergency and can be tens of thousands of dollars. A news release said the proposal from the Consumer Financial Protections Bureau could raise credit scores for those affected by an average of 20 points.
A March 2022 report from the CFPB estimated medical bills comprised $88 billion of debt on credit reports nationwide.
“We know what (a credit score) means in terms of your eligibility for a car loan, a home loan, or even an apartment lease,” Harris said. “This is going to be a game changer for so many people.”
Charlotte resident Joshua Kennerly, who attended the event, said he experienced an incident that landed him in the hospital, which was unplanned.
“(The new proposal) is very helpful for me, because I didn’t have insurance at the time, so I wasn’t able to pay the debt,” he said. “That’s not going to be on my credit, and I think that’s very important. I do appreciate the administration for changing that.”
In North Carolina, medical debt judgments can last up to 20 years, and can come in the form of liens against a patient’s home. Between January 2017 and June 2022, hospitals sued over 7,500 North Carolinians to collect medical debt, and won over $57 million in judgments, according to a news release from the North Carolina Department of State Treasurer in 2023.
Tar Heel state politicians have tried to take action against medical debt, too. In May 2023, the North Carolina Senate passed the bipartisan Senate Bill 321, which was intended to limit the ability of large medical centers to use “unfair” tactics in debt collection. The bill was referred to the House Rules Committee and hasn’t moved.
2024 campaign implications
Democratic campaign consultant Dan McCorkle told The Charlotte Observer debt is an issue that excites the Democratic voter base and impacts adults of all ages.
“How much debt can you pile on top of someone, if they have the unfortunateness of having medical debt on top of student loan debt? It can get pretty overwhelming.” he said.
Harris’ visit on Wednesday was her fifth to North Carolina this year. In a visit to Charlotte in January, she announced that the state would receive $12 million in federal funding for school mental health services. In April, she visited Charlotte again and announced $20 billion in grants for clean energy projects.
In the same April visit, Harris also marked the opening of a campaign office in uptown.
The campaign has focused on organizing in North Carolina, a battleground state, and Mecklenburg County in an effort to win the 2024 election. In 2020, former president Donald Trump beat Biden by only 1.3% in North Carolina. Recent polls show Trump leading Biden in the state by about 6%.
“An ‘economic opportunity tour’ is a curious decision for the Biden administration to tout, when their failed economic policies have produced record inflation, higher gas prices, and made it harder to afford the basics,” said NCGOP Communications Director Matt Mercer. “Americans remember a roaring economy under President Trump that made our nation more prosperous than ever and that’s why we will re-elect him in November.”
Harris’ visit follows Trump’s stop in the Charlotte area during Memorial Day weekend to attend the Coca-Cola 600 at Charlotte Motor Speedway in Concord.
