Medical debt in Delaware has been recently impacted in two ways. In late July, Governor Matt Meyer signed Delaware SB 156 into law, joining states like Maryland, Oregon, and more that have laws prohibiting medical debt from being included on credit reports. On the same day the governor signed the bill into law, he announced a partnership with Undue Medical Debt to eliminate up to $50 million in medical debt in the state.
Delaware Medical Debt Credit Reporting
Delaware SB 156, which was introduced in late May and passed both houses with no opposition. The bill, “prohibits the reporting of medical debt information to consumer reporting agencies and prohibits any medical debt information that is contained in any consumer report from being used when making decisions regarding someone’s credit, employment, or housing.”
The bill goes into effect on October 27, 2025, 90 days from when it was signed into law by Governor Meyer.
Medical Debt Elimination Partnership
On July 29, 2025, Governor Meyer announced that the State of Delaware was partnering with Undue Medical Debt, a national nonprofit that purchases large amounts of medical debt for pennies on the dollar. Delaware will utilize $500,000 in state funds to purchase up to $50 million in medical debt for an estimated 17,000 Delawareans.
To qualify for medical debt relief, Delaware residents must have an annual household income at or below 400% of the federal poverty level or have medical debt that equals five percent or more of their annual household income. According to a press release from the governor’s office, the medical debt relief will be announced in waves in the coming months.
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