Here’s a transformed version of the article, focusing on unique phrasing, verifiable facts, and a breaking-news lead with evergreen context:

Breaking: Federal Rule to Remove Medical Bills from credit Reports Finalized, Impacting Millions

A new federal rule has been finalized, aiming to remove medical debt from consumer credit reports. This decision is expected to affect approximately 15 million americans who currently have medical debt listed on their credit files. The Consumer Financial Protection Bureau (CFPB) stated that these individuals are often penalized with lower credit scores not due to non-payment, but becuase they are actively disputing the charges or because hospitals have reported the debt incorrectly.

Evergreen Context: The Evolving Landscape of Medical Debt and Credit Reporting

The finalized rule addresses a long-standing concern regarding the accuracy and fairness of credit reporting for medical expenses. Previously, medical debt, nonetheless of its age or amount, could negatively impact a consumer’s creditworthiness. While the three largest credit reporting companies have already begun removing paid medical debts, unpaid debts less than a year old, and those under $500, this new rule signifies a broader shift in how medical debt is treated in the credit system.

Industry groups, however, have expressed reservations about the rule’s potential impact on lending decisions. The Consumer Data Industry Association, through its president and CEO Dan Smith, argued that details on unpaid medical debts is crucial for assessing a consumer’s ability to repay loans. Smith emphasized that excluding this data could present an “inaccurate and incomplete picture” and compromise the “integrity of the system.”

This development occurs against a backdrop of critically important legislative changes that could affect millions of Americans’ access to health insurance. The Trump administration’s tax cut and spending law is projected to reduce federal spending on Medicaid and Affordable Care Act (ACA) insurance plans by approximately $1 trillion over the next decade. According to the congressional Budget Office (CBO), this could lead to the elimination of health insurance coverage for 11.8 million people. Moreover, the law’s failure to extend COVID-19 pandemic-era tax credits, which made ACA plans more affordable, could result in an additional 5 million individuals losing their health insurance, as indicated by a prior CBO analysis.