Massachusetts to bar licensed providers and collectors from reporting medical debt to credit bureaus, proposes regulations

Governor Healey announced proposed regulations on medical debt that would bar any health care facility or licensed provider in Massachusetts — and the collection agencies that work for them — from reporting medical debt to credit reporting agencies.

"We're banning medical debt from being reported to credit agencies. That's what we're doing," the governor said, framing the measure as a state-level response after federal action remained unlikely. She said medical bills often lead to long-term financial harm, hurting credit scores and limiting access to housing, cars and jobs.

The administration said the proposed rules, drafted by the Department of Public Health, will be issued for public comment immediately. "We're tying this to licensure," Secretary of Health and Human Services Kiami Mahania said. "If somebody were to enter in a contract that actually reported medical debt, their license would be at risk." Mahania described the dual approach as closing a loophole by covering both provider reporting and third-party debt collectors.

Officials stressed the regulations are proposed rules subject to the standard notice-and-comment process. Dr. Robbie Goldstein, Commissioner of Public Health, and agency staff were credited with preparing the regulations; the event did not record any final effective date. In the question-and-answer session, administration officials said they hope for rapid implementation but reiterated that the rulemaking timeline depends on the public comment process.

The governor also highlighted a private-sector effort to alleviate medical debt: she credited Atrius Health (named in remarks as a partner), the nonprofit Undo Medical Debt and the Massachusetts Health and Hospital Association for steps that will ease more than $40 million in medical debt for tens of thousands of residents. "I want to applaud the leadership and the partnership of Atrius Health, Undo Medical Debt, and the Massachusetts Health and Hospital Association for taking this step to make life easier for the patients that they serve and cover," she said.

Advocates at the event described how financial fear deters people from seeking care. Jennifer Leman, executive director of Healthcare for All, said the organization's helpline handles more than 20,000 calls a year in five languages. "These new protections represent an important step forward for Massachusetts families and patients," Leman said. Gabriella Paloma, a bilingual helpline counselor, described callers who avoid emergency care out of fear of bills and said helpline work aims to prevent medical debt by helping people navigate coverage. "Medical debt isn't just about a bill — it is often, most of the time, about fear," Paloma said.

The administration characterized the step as one part of a broader affordability agenda that includes capped deductibles and efforts to reduce prior authorization barriers. An attendee who identified themself in the remarks as the Attorney General noted the administration's ability to enforce consumer protections under Chapter 93A; the officials also pointed to licensure sanctions as a regulatory enforcement tool.

What happens next: the Department of Public Health will publish the proposed regulations and open a public comment period; officials said the rules are intended to prevent medical debt from appearing on credit reports but did not announce a firm implementation date.