A bill on medical debt  has been introduced by Congresswoman Mary Jo Kilroy. This bill is going to be known as the Medical Debt Relief Act, 2010. However, this bill handles the issue of reporting of medical debts, mainly those that has been in collections, and has later been paid off.

The main problem with medical bills in collections is that, these generally stay on your credit report even after getting paid. So, this act speaks of removing the paid medical bills which were once in collections from the debtor’s credit report. According to those who have introduced the bill, medical debts are unique as medical conditions can arise all of a sudden unlike consumer debts. So, these kinds of debts should be handled in a different way.

According to recent findings by the Congress in 2007, at least 28,000,000 American adults were contacted by a collection agency for unpaid medical bills. This also shows that hospitals and clinics are turning more towards collection agencies to retrieve payments from the patients.

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