Unpaid medical bills will no longer appear on credit reports, where they can block people from mortgages, car loans or small business loans, according to a final rule announced Tuesday by the Biden administration.
The Consumer Financial Protection Bureau rule will remove $49 billion in medical debt from the credit reports of more than 15 million Americans, according to the bureau, which means lenders will no longer be able to take that into consideration when deciding to issue a loan.
The change is estimated to raise the credit scores by an average of 20 points and could lead to 22,000 additional mortgages being approved every year, according to the bureau. Vice President Kamala Harris said in a statement announcing the rule that it would be “lifechanging” for millions of families.
“No one should be denied economic opportunity because they got sick or experienced a medical emergency,” she said.
Harris also announced that states and local governments have used a sweeping 2021 pandemic-era aid package to eliminate more than $1 billion in medical debt for more than 700,000 Americans.
The administration announced plans for the rule in fall 2023.
The CFPB said that medical debt is a poor predictor of an individual's ability to repay a loan. Experian, Equifax and TransUnion, the three national credit reporting agencies, said last year that they were removing medical collections debt under $500 from U.S. consumer credit reports.
The new rule from the Biden administration is set to take on the outstanding bills appearing on credit reports.
Vice President Kamala Harris addresses the media after overseeing the counting of the electoral ballots to certifying the 2024 presidential election in the House Chamber at the U.S. Capitol on Monday, Jan. 6, 2025, in Washington. (AP Photo/John McDonnell)
Vice President Kamala Harris talks to reporters after presiding over a joint session of Congress to confirm the Electoral College votes at the Capitol, Monday, Jan. 6, 2025, in Washington. (AP Photo/Jose Luis Magana)
SAN FRANCISCO (AP) — Justin Verlander and the San Francisco Giants have agreed to a $15 million, one-year contract, according to a person with direct knowledge of the negotiations.
The person spoke to The Associated Press on condition of anonymity Tuesday because the deal was pending a physical.
It's the latest big move by new Giants President of Baseball Operations Buster Posey since he was hired in September to replace Farhan Zaidi.
San Francisco also signed free agent shortstop Willy Adames to a $182 million, seven-year contract in December.
This will be the 20th major league season for Verlander, a three-time AL Cy Young Award winner who turns 42 next month. He would join a Giants rotation led by All-Star righty Logan Webb.
Verlander went 5-6 with a 5.48 ERA in 17 starts for the AL West champion Houston Astros last year. He opened the season on the injured list with shoulder inflammation. He also was on the IL from June 18 to Aug. 21 because of neck discomfort.
The right-hander had a 9.26 ERA in five September starts and was left off Houston’s postseason roster when the team was swept by Detroit in an AL Wild Card Series. He became a free agent after he failed to pitch 140 innings, a total that would have triggered his ability to exercise a $35 million conditional player option.
After the Astros were eliminated from the playoffs, Verlander said he thought he had "a lot more to give” next season and beyond.
“I definitely feel like I want to continue to pitch and compete and I’m not ready to step away yet,” he said in October.
Verlander, a Virginia native who played college ball at Old Dominion, was selected by Detroit with the No. 2 overall pick in the 2004 amateur draft. He made his big league debut with the Tigers in 2005.
The 6-foot-5 ace spent his first 12-plus seasons with Detroit. He won his first Cy Young Award and was voted AL MVP after he went 24-5 with a 2.40 ERA in 2011.
He was traded to Houston in August 2017 and helped the team capture the franchise’s first World Series title that same year. He won two more Cy Young Awards and another championship during his first stint with the Astros.
Verlander signed an $86.7 million, two-year contract with the New York Mets as a free agent in December 2022. The nine-time All-Star made 16 starts for New York before he was traded back to Houston for two minor leaguers.
Verlander is 262-147 with a 3.30 ERA in 526 career starts. He is baseball’s active leader in wins, strikeouts (3,416), innings (3,415 2/3), starts and complete games (26). He also has a 17-12 record with a 3.58 ERA in 38 career postseason appearances.
AP Baseball Writer Jay Cohen contributed to this report.
AP MLB: https://apnews.com/hub/MLB
FILE - Houston Astros starting pitcher Justin Verlander delivers against the Cleveland Guardians during the first inning of a baseball game in Cleveland, Sept. 28, 2024. (AP Photo/Phil Long, File)
