Experian, TransUnion, and Equifax (CRAs – credit reporting agencies) have announced changes to how medical debt will be handled on your credit and how it will affect your credit score. Starting July 1, 2022 paid medical collection debt will no longer appear on credit reports. In 2023 medical debts less than $500 will no longer appear on credit reports. Analysts believe that this will have an impact on 70% of all medical debt collections. This would be a great help to consumers looking to buy a home if any can afford one in the current housing market, which is anywhere between 30%-75% overvalued no matter where you live. It also seems that the credit reporting agencies have been very slow to react considering Fannie Mae, Freddie Mac, the VA, the USDA, and FHA have all stopped considering medical debt collections when qualifying buyers for a mortgage. Commentators claim that medical debt is not a matter of financial mismanagement so it shouldn't be reported as a negative mark on credit. But the reality is that huge percentages of medical debt and medical debt collections are false and fraudulent to begin with. Hospitals routinely overcharge millions of consumers in an intentional and fraudulent scheme to increase their bottom line. That is the real issue that is still not being addressed. This is a step in the right direction but medical debt is a disease in the life of consumers across America and until hospitals and medical organizations are severely punished for their fraudulent billing and debt collection practices this will act as nothing more than a band-aid.