NCL applauds FDA approval of Journavx for acute pain relief, advancing non-opioid alternatives 

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Media Contact: Lisa McDonald, Vice President of Communication, 202-207-2829

Washington, DC – The National Consumers League (NCL) applauds the U.S. Food and Drug Administration (FDA) for approving Journavx, a pioneering non-opioid analgesic for treating moderate to severe acute pain in adults. This approval introduces a promising alternative to opioids in pain management, addressing the urgent need for safer treatments amid the ongoing opioid crisis.

According to the CDC there were an estimated 75,091 opioid overdose deaths in 2024. As the first drug in a new class of non-opioid analgesics, Journavx offers a critical option for patients needing pain relief without the risks associated with opioids.  This groundbreaking alternative works by targeting sodium channels in the peripheral nervous system, reducing pain signals before they reach the brain.

“The approval of Journavx is a significant step forward in providing consumers with safe, non-opioid alternatives for pain management,” said Sally Greenberg NCL CEO. “In the face of the opioid epidemic, the FDA’s decision gives us hope for a future where pain management can be effective and free of the risks that have harmed so many.”

The drug provides an important option for acute pain management, especially as the healthcare community looks for ways to reduce opioid dependency. To learn more about additional non-opioid alternatives listen to NCL’s We Can Do This! podcast episode, where we explore the future of pain management here.

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About the National Consumers League (NCL)

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Nancy Glick

Preventing foodborne illness is worth the investment

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Nancy GlickBy Nancy Glick, Director of Food and Nutrition Policy

“We’re not going back” is a rallying cry not usually associated with food safety policy. But if the Trump Administration heeds the call from the trade association for the processed meat industry to withdraw a needed proposed food safety rule, Americans will indeed go back to facing preventable foodborne illness outbreaks. 

The rule in question – to allow USDA’s Food Safety and Inspection Service (FSIS) to establish standards that will keep Salmonella contaminated chicken carcasses and poultry parts from entering the market – comes at a time when Salmonella infections are on the rise in the U.S.  According to data from the Centers for Disease Control and Prevention (CDC), Salmonella bacteria cause over 1 million human infections in the United States each year, putting more Americans at risk for serious illness, including fever, bloody diarrhea, and sometimes life-threatening complications. Moreover, CDC estimates that foodborne Salmonella causes 29 illnesses for each case that is detected – meaning significantly more people are getting sick than records show.  

The National Consumers League (NCL), as part of the Safe Food Coalition, praised FSIS for issuing the proposed rule in January 2025, as did many public health and medical societies. Why? One reason is because chicken is a major source of illness from Salmonella, causing an estimated 195,634 illnesses each year at a cost of $2.8 billion annually, according to Consumer Reports. In fact, CDC estimates that about one in every 25 packages of chicken at the grocery story are contaminated with Salmonella.  

The other reason is the good news. Today, advances in technology make it possible for inspectors to rapidly detect and mitigate Salmonella and other foodborne pathogens throughout the poultry supply chain. Thus, the FSIS rule is predicated on new technologies for early detection of foodborne bacteria.  

But, the Meat Institute, speaking for the $227.9 billion meat and poultry processing industry, has asked the Trump Administration to withdraw the rule as a way to reduce “burdensome” regulations. The group says the new FSIS rule, which was three years in the making, will “add cost to the production and supply of food, exacerbating food price inflation to the detriment of consumers.”  

However, NCL actually speaks for consumers, and we challenge this position. Polls show that Americans favor stronger food safety oversight. In a 2022 survey, 74 percent said it would be worth a 1 to 3 percent increase in the cost of food to pay for added safety measures.  

Moreover, Americans recognize that foodborne illness has widespread consequences, both in terms of people’s lives and costs to society. Starting with the human toll, CDC estimates that 48 million people get sick, 128,000 are hospitalized and 3,000 people die each year from foodborne diseases. In terms of the cost to the economy, a study by researchers from USDA’s Economic Research Service puts the cost to the economy at $75 billion (in 2023 dollars) annually, which includes medical care, lost productivity, and premature deaths, including those associated with secondary chronic illnesses.   

For all these reasons, Americans are not willing to give up food safety protections for the possibility of saving a few pennies when buying poultry products. Instead, consumers – along with public health officials and infectious disease specialists – are calling on the Trump Administration to finalize enforceable safety standards for poultry products as part of the new “Make America Healthy Again” initiative because the FSIS rule will result in safer food and fewer illnesses.  

NCL expresses concern over the U.S. Senate’s confirmation of Robert F. Kennedy Jr. as Secretary of Health and Human Services

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Media Contact: Lisa McDonald, Vice President of Communication, 202-207-2829  

Washington, DC – The National Consumers League (NCL), a long-time advocate for consumer health and safety, is disappointed with the Senate’s confirmation of Robert F. Kennedy Jr. as Secretary of Health and Human Services (HHS), which oversees agencies such as the Food and Drug Administration (FDA), the Centers for Disease Control and Prevention (CDC), and the National Institutes of Health (NIH). NCL has consistently supported science, evidence-based medicine, and public health and believes this appointment poses a significant risk to Americans’ health and well-being. Kennedy, who holds a law degree and has no medical training, is uniquely unqualified for this role.  

 “NCL stands firmly on the side of science and evidence-based medicine. We support policies that prioritize public health, protect consumers, and ensure the safety and efficacy of medical practices and treatments,” said NCL CEO Sally Greenberg. “With Robert F. Kennedy Jr.’s confirmation, we are concerned that HHS leadership will be compromised by someone who has repeatedly ignored science and factual evidence in favor of misinformation.”   

 The Secretary of Health and Human Services must lead with facts, scientific data, and a commitment to public well-being.  By appointing Kennedy, who has a history of spreading baseless claims and promoting harmful misinformation, the confirmation undermines trust in the very healthcare system that is intended to protect the American public.   

“Robert F. Kennedy, Jr. is a twin danger to the nation’s health. Not only is he not a medical provider, but he promotes unproven alternative therapies with no scientific evidence of therapeutic benefits, which in turn could harm consumers,” said Greenberg.

The FDA currently mandates rigorous clinical trials before approving drugs as cures or designated for treating specific medical conditions. The FDA does not regulate supplements, a significant part of the wellness market; however, it oversees false health claims and products that pose health risks to consumers. NCL urges the medical establishment to closely monitor any unsafe products or therapies he may endorse.

NCL previously collaborated with HHS, the FDA, CDC, and NIH during the first Trump Administration and hopes to build on that foundation. For the sake of public health, we will hold him accountable for his promise to the Senate to support vaccines, medical research, clinical trials, and pharmaceutical advancements that have made HHS the gold standard for healthcare around the world.   

We also appreciate the thought behind Kennedy’s “Make America Healthy Again,” initiative which plans to address obesity and chronic diseases, promotes healthier food choices, prioritizes fresh, whole foods over processed options, and seeks to eliminate potential conflicts of interest in public health policies.    

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About the National Consumers League (NCL)    

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.  

NCL joins 25+ advocacy organizations in opposing expansion of 340B drug pricing program in New York 

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Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829   

Washington, DC – Today, the National Consumers League (NCL) joined over 25 patient and provider advocacy organizations in voicing strong opposition to the proposed expansion of the 340B Drug Pricing Program under NY Senate Bill 1913. The groups, which represent a broad coalition of patients, healthcare providers, and consumer advocates, assert that the 340B program, originally designed to support vulnerable populations, has instead become a profit-driven mechanism benefiting large hospital systems and middlemen—without delivering on its promises to the low-income individuals it was meant to help.  

“The 340B program was designed to help vulnerable patients, but it’s become a profit-driven system that benefits hospitals, not those in need,” said Samantha Sears, Health Policy Associate at NCL. “It’s time for policymakers to demand real accountability and transparency.” 

Without these changes, 340B will continue to drive up costs while failing to serve those who need it most. Rather than expanding a flawed and dysfunctional system, the coalition is urging state legislators to take meaningful action to reform 340B. They are calling for: 

  • Greater transparency on how 340B savings are reinvested into patient care. 
  • Direct benefits to lower drug costs for uninsured patients. 
  • A focus on expanding the program in truly underserved areas. 

The full letter is available here. 

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About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit nclnet.org.

NCL urges the public to heed warnings about unregulated versions of GLP-1 weight loss drugs

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Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829

Washington, DC — As an organization with a long history of helping the public avoid fakes and unregulated products, the National Consumers League (NCL) is urging consumers and health professionals to heed the warning from the Food and Drug Administration that compounded versions of GLP-1 (glucagon-like peptide-1 (GLP-1) receptor agonists) drugs now widely promoted on television and online are not FDA approved and may cause serious health problems.

Because studies show that FDA-approved anti-obesity medications (semaglutide and tirzepatide) can help individuals achieve significant weight loss, demand for GLP-1s has surged, prompting supply shortages and consumers to seek alternative ways to obtain these drugs because many health plans do not cover GLP-1s. This dynamic first opened the door for compounding pharmacies to sell non-identical versions of GLP-1 drugs under specific FDA regulations that apply when there is a shortage. Yet now, consumers are navigating a largely unregulated marketplace where numerous actors – telehealth companies, med-spas, illegal online pharmacies, and others – are marketing untested compounded GLP-1 drugs or actual counterfeits that, according to the FDA, may contain incorrect dosages, the wrong ingredients, too much, too little or none of the active ingredients, and possibly bacteria.

Underscoring the potential health consequences from dosing errors and exposure to the wrong ingredients, the FDA has received 607 adverse event reports related to compounded versions of semaglutide and tirzepatide as of November 24, 2024, many of which involve life-threatening and even deadly consequences. This includes approximately 10 deaths and over 100 hospitalizations from compounded semaglutide alone.

Besides the potential health risks, the National Association of Boards of Pharmacy (NABP) warns that illegal online pharmacies are selling substandard or falsified GLP-1 agonists without holding the required pharmacy licensure and without requiring a valid prescription. In fact, NABP has identified thousands of websites that promote the illegal sale of GLP-1 agonists, including sites that are connected to domain names that include GLP-1 drug’s brand names, including Ozempic and Wegovy. Additionally, NCL is aware of new research reported in the JAMA Health Forum, which finds that many websites for mass-produced compounded GLP-1 drugs do not include information about the drugs’ adverse effects, warnings, and contraindications, including hospitalizations, and use misleading language suggesting the compounded product is FDA-approved or equivalent to an FDA approved GLP-1 drug.

Recognizing that incorrect beliefs about obesity, misinformation about treatment options, and restrictive insurance policies keep Americans from getting quality obesity care, NCL and the National Council on Aging issued the first Obesity Bill of Rights for the nation, which establishes The Right to Accurate, Clear, Trusted, and Accessible Information as essential for informed decision-making. In furtherance of this right, NCL urges Americans to follow this advice from the FDA and obesity medicine specialists regarding compounded GLP-1 drugs:

  • Be aware that a compounded drug for obesity is not a copy of an FDA-approved GLP-1 drug. There are differences in how the different medicines are produced and often, the ingredients are different. Further, unapproved drugs have not gone through the FDA’s rigorous review process to ensure safety, effectiveness, and quality.
  • Before seeking treatment with an injectable GLP-1 drug, talk to your doctor or health provider to determine if you are a candidate for treatment with a GLP-1 based on your risk factors and degree of obesity. Also, ask questions about the differences between FDA-approved innovator drugs and off-brand compounded versions.
  • Because GLP-1 drugs are serious medicines that carry risks as well as benefits, it is best to obtain a prescription from your doctor or a health professional you know and fill the prescription at a state-licensed pharmacy.
  • In situations where you choose a telehealth option, beware of prescribing practitioners who do not take your personal history, do not diagnose the degree of obesity with appropriate evaluation measures, or prescribe a GLP-1 drug without ongoing monitoring.

Before ordering a compounded GLP-1 drug through an online pharmacy, follow the FDA’s tips to spot the warning signs that the website may be unsafe, such as the online pharmacy is not licensed in the US or by a state board of pharmacy and offers deep discounts that seem too good to be true.

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About the National Consumers League (NCL)   

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org. 

Nancy Glick

A New CMS Rule Could Be a Gamechanger for Adults with Obesity

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Nancy GlickBy Nancy Glick, Director of Food and Nutrition Policy

If the story of combatting the nation’s obesity epidemic were a movie, it would be Groundhog Day.

Year in and year out, for over a decade, advocates and obesity specialists worked to get changes in federal policy. They pressed to get bills passed in Congress, drafted white papers, published research findings in medical journals, held roundtables and briefings, and sent letters and emails to policymakers over and over. But, using the Groundhog Day metaphor, the same day would start again.

Until now. Just as the protagonist in Groundhog Day changed his way of thinking and got the girl, the Centers for Medicare & Medicaid Services (CMS) changed its thinking to recognize obesity as a distinct and serious chronic disease requiring treatment. Based on this reinterpretation, CMS published a potentially game-changing proposed rule to establish the treatment of obesity as a medically necessary service under Medicare and Medicaid and allow Part D coverage of FDA-approved anti-obesity medications (AOMs), including new injectable drugs called GLP-1s (glucagon-like peptide-1 receptor agonists), as a result.

However, better obesity care is not a movie, and the proposed rule, while a major development, is not a final action. Before Medicare and Medicaid beneficiaries can get treated with new anti-obesity medicines, the agency must go through a formal rulemaking process to finalize the proposed rule, including receiving and analyzing comments from individuals and organizations concerned about obesity. This process is now underway, and the obesity community is coming out in force to urge CMS to update its Medicare and Medicaid coverage policy for AOMs based on medical evidence that obesity medications treat the disease of obesity and are not merely agents for “weight loss.”

As the organization that partnered with the National Council on Aging (NCOA) and leading obesity specialists across the country to develop and issue the first Obesity Bill of Rights for the nation, NCL submitted comments as the voice of the nation’s consumers and urged CMS to finalize the proposed rules for these reasons:

There Is a Widespread Scientific Consensus That Obesity Is a Distinct Chronic Disease – CMS’s reinterpretation of Medicare Part D policy is grounded in extensive medical evidence that obesity is not a cosmetic condition but a distinct and serious chronic disease requiring treatment. Reinforcing this recognition of obesity as a distinct disease state, major medical organizations now consider obesity a chronic disease due to its complex biological mechanisms and potential for significant health complications. This includes the American Medical Association, American Association of Clinical Endocrinologists, American College of Endocrinology, and all the leading obesity and nutrition organizations.

Obesity Is the Nation’s Most Prevalent Chronic Disease and Is Directly Linked to Numerous Chronic Diseases –Today, obesity affects 41.9 percent of US adults – more than 100 million people – which makes obesity the most prevalent chronic disease affecting Americans, significantly eclipsing the other most prevalent chronic diseases: heart disease, diabetes, chronic kidney disease, cancer, chronic lung disease, Alzheimer’s Disease, and stroke. Even more significantly, more than 230 medical conditions are directly linked to overweight and obesity, meaning these diseases worsen as the degree of obesity increases. Thus, obesity today is responsible for an estimated 400,000 deaths a year.

The Cost of Obesity Is Too High and Everyone Is Paying the Price – Obesity, due to its role in causing or worsening chronic disease, accounted for 47.1 percent of the total direct and indirect costs of treating chronic conditions in 2016. Accordingly, some estimates put the national cost of obesity at $1.7 trillion a year –more than what Social Security paid in retirement benefits in 2022.

Compared to Other Serious Chronic Diseases, Obesity Goes Largely Undiagnosed and Untreated – The Obesity Bill of Rights was issued to transform obesity care in the US at a time when obesity remains largely undertreated with costly repercussions in high rates of obesity-related diseases and preventable deaths. Reflecting this reality, only 30 million of the more than 100 million Americans living with obesity in 2022 received a diagnosis of obesity, and only around 2 percent of those eligible for anti-obesity medications were prescribed these drugs. Although multiple factors are responsible for this pervasive gap in obesity care, the most pernicious are access barriers that keep people with obesity from getting the care they need, whether through the exclusion of obesity treatments in many insurance plans, restrictive insurance practices that delay or deny treatment, or out-of-date government policies.

New Anti-obesity Medications Are Safe and Effective and Result in Savings From Improved Health Outcomes – As noted in the CMS proposed rule, there have been major advances in understanding and treatment of the disease of obesity since the Medicare Part D program went into effect in 2006, resulting in new therapeutic agents, such as GLP-1 drugs that can help people lose up to 20 percent of their weight in 26 months. Calculating the potential savings resulting from better health outcomes when obesity is treated, studies are beginning to project the potential savings to the economy from covering obesity medications. One recent study published December 5, 2024, in JAMA Network Open estimated that a 10 percent weight loss resulting from obesity treatment saved $2,430 in reduced medical expenditures, and for a 25 percent weight loss, the reduction in health expenditures is $5,444 per person.

The comment period for the CMS proposed rule closes soon, and then it will be up to the new Trump Administration to finalize this important rulemaking. It is our hope that the new team at CMS will make this a priority. Simply put, this important change in CMS policy will make a significant difference in the lives of millions of Americans.

Statement on the need for the CMS Rule on Coverage of Obesity Medications

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Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

Washington, DC – We, the undersigned organizations, are enthusiastically supportive of the proposed rule by the Centers for Medicare & Medicaid Services (CMS) to align coverage policy to reflect the prevailing medical consensus that obesity is a chronic disease. We urge the incoming administration to finalize this policy through the rulemaking process. By extending access to obesity medications for people living with obesity who lack access to comprehensive evidence-based care in Medicare and Medicaid, the proposed CMS rule would address an urgent health crisis and leading contributor to the “Unhealth” of Americans. If action is not taken, the total number of adults with overweight or obesity will reach 213 million. To achieve making America healthier, obesity must be addressed, treated and managed effectively.

Medicare Part D’s prohibition of coverage for “weight loss” medications is a major barrier for older Americans and those living with disabilities, and many dual eligible beneficiaries, to receiving medically necessary, safe, and effective FDA-approved pharmacotherapy to treat obesity. Medicare’s current categorization and restriction is outdated. It does not align with current medical evidence, standards of care or the understanding of the disease.

The CMS proposed rule would require coverage for obesity medications under Medicare and Medicaid by acknowledging obesity as a chronic condition. We wholeheartedly agree with the rule’s proposal to reinterpret these medications for the treatment of obesity, that would provide coverage under Medicare and Medicaid.

Obesity is a treatable chronic disease that plays a major factor in many other conditions such as type 2 diabetes, hypertension, heart disease, fatty liver disease, kidney disease, lipid disorders, certain cancers, sleep apnea, arthritis, and mental illness. The treatment of obesity requires a comprehensive approach including administering intensive behavioral therapy (IBT) and bariatric surgery under Medicare Part B and providing Medicare Part D coverage for Food and Drug Administration (FDA) approved obesity medications.

The obesity epidemic has had a negative impact on our nation’s health and economy. Among older adults (aged 60+), the prevalence of obesity is 42.8 percent, similar to the level among younger and middle-aged adults. More than 20 percent of the population will be 65 years of age or older by 2030, up from 15 percent today, highlighting the importance of addressing obesity among older Americans. Among Medicaid beneficiaries, the prevalence of obesity is 38 percent, while the prevalence of overweight and obesity is 70 percent among Medicaid adults.

Without treatment Medicare and Medicaid beneficiaries with obesity risk further health deterioration and an increased likelihood in the onset of complications including obesityrelated cancers, type 2 diabetes, and end stage renal disease. Additionally, people with
severe obesity have a 48 percent higher risk of physical injury including falls which lead to higher costs and mortality rates.

The new administration must take action to address this crisis, by allowing Medicare and Medicaid to offer comprehensive obesity care for the millions of Americans who need these services and treatments. This action would improve the health of individuals before they enter the Medicare program, thereby supporting better health and reducing long-term costs.

A Philip Randolph Institute
Academy of Nutrition and Dietetics
Alliance for Aging Research
Alliance for Patient Access
Alliance for Women’s Health and Prevention
American Academy of Physician Associates
American Association of Clinical Endocrinology
American College of Occupational and Environmental Medicine
American Diabetes Association
American Gastroenterological Association
American Kidney Fund
American Liver Foundation
American Medical Women’s Association
American Psychological Association Services
American Society for Metabolic and Bariatric Surgery
American Society for Nutrition
Association of Diabetes Care & Education Specialists
Bone Health & Osteoporosis Foundation
California Black Health Network
California Chronic Care Coalition
CancerCare
Caregiver Action Network
Center for Patient Advocacy Leaders (CPALs)
Choose Healthy Life
Chronic Care Policy Alliance
Color of Gastrointestinal Illnesses
ConscienHealth
Crohn’s & Colitis Foundation
DCM Foundation
Diabetes Leadership Council
Diabetes Patient Advocacy Coalition
Endocrine Society
Fatty Liver Foundation
Gerontological Society of America
Global Liver Institute
HealthyWomen
ICAN, International Cancer Advocacy Network
League of United Latin American Citizens (LULAC)
Liver Coalition of San Diego
Looms For Lupus
Lupus and Allied Diseases Association, Inc.
Lupus Foundation of America
MacDonald Center for Nutrition Education and Research
MANA, A National Latina Organization
Michigan Academy of Nutrition and Dietetics
Missouri Chapter of the American Academy of Pediatrics
Missouri Psychological Association
Movement is Life
National Alliance for Caregiving
National Asian Pacific Center on Aging (NAPCA)
National Association of Hispanic Nurses
National Black Nurses Association, Inc
National Caucus and Center on Black Aging
National Consumers League
National Council on Aging
National Hispanic Council on Aging
National Hispanic Health Foundation
National Hispanic Medical Association
National Kidney Foundation
National Psoriasis Foundation
Nevada Chronic Care Collaborative
Obesity Action Coalition
Obesity Care Advocacy Network
Obesity Medicine Association
PAs in Obesity Medicine
RetireSafe
Society for Women’s Health Research
Society of Behavioral Medicine
STOP Obesity Alliance
The American Society for Preventive Cardiology
The Mended Hearts, Inc.
The Obesity Society
WomenHeart
YMCA of the USA

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About the National Consumers League (NCL) 

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL commends CFPB’s rule to eliminate medical debt from credit reports

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The National Consumer Law Center and a coalition of other leading consumer-focused organizations, including the National Consumers League, released the following press statement on January 7, 2025.

Sally Greenberg, NCL’s CEO, said “The magnitude of medical debt in America is crippling:100 million Americans carry medical debt that is not caused by profligate spending, but often by medical emergencies. Thus, punishing Americans who carry this debt by harming their credit scores, forcing them to turn to predatory lending if they need a car or home loan multiplies the harm. The CFPB’s rule stopping credit reporting agencies from sharing medical debt with lenders will prevent adding to the burden of the 15 million Americans with lowered credit scores due to medical debt. NCL supports this important rule.”

CFPB Rule Removes Medical Debts from Credit Reports

January 7, 2025 — Press Release

15 Million Americans Will See Credit Scores Improve 

Washington, DC– Today, the Consumer Financial Protection Bureau (CFPB) finalized a rule to stop the harmful impact of medical debt on consumers’ credit scores. The rule will stop credit reporting companies from sharing medical debts with lenders and prohibit lenders from making lending decisions based on existing medical debt.

“Medical debt has damaged the financial record of tens of millions for far too long, causing credit rejections and pushing costs even higher for Americans struggling financially,” said Chi Chi Wu, senior attorney at the National Consumer Law Center. “The CFPB continues with its impressive record of protecting consumers, providing critical relief to the 15 million Americans with unjustly lowered credit scores due to medical debt.”

Even though medical debt has minimal predictive value in forecasting about whether people will pay their loan payments, vast amounts of medical debt information remains in the credit reporting system. Medical debt unjustly damages the credit scores of millions, limiting their ability to obtain affordable credit, rent safe housing, or even get a job. It also assists debt collectors in seeking to coerce payments, including for inaccurate or false medical bills.

The big three credit reporting agencies (Equifax, Transunion, Experian) voluntarily removed some medical collections information starting in 2022, but in 2024 the CFPB found that 15 million Americans still had more than $49 billion in outstanding medical debt on their credit reports. Consumers left behind by industry efforts were more likely to live in the South and in predominantly Black and Latino/Hispanic neighborhoods.

“Today’s medical debt rule will lessen the financial burdens for all households, but particularly for Black and Latine families, who carry more medical debt due to decades of intentionally racist policies and practices across health care, employment,housing, education, and financial services,” said Amanda N. Jackson, consumer campaign director for Americans for Financial Reform. “A good credit score is critical for participating in the U.S. economy, and this rule will continue to help lessen the negative credit impacts of medical debt.”

This rule is part of a larger initiative by the CFPB to address hidden junk fees charged by banks and financial companies that disproportionately impact low-income consumers. Since its formation, the CFPB has obtained over $21 billion in relief for over 205 million people. Despite its success and its popularity with the public, the agency’s future is at risk. Most recently, advisors to the President-elect have called for the CFPB to be shuttered. The medical debt credit reporting rule itself could also be overturned by Congress using the Congressional Review Act (CRA), which allows Congress, with the President’s signature, to overturn new regulations.

“The medical debt rule shows how important the CFPB is to working people who are losing ground to corporate profiteering,” said Lauren Saunders, associate director at NCLC. “Working class folks must speak up to ensure the CFPB’s rule to limit medical debts on credit reports, and the CFPB itself, survive attacks by corporate America.”

The final rule does not apply to medical debts on credit cards, including specialized credit cards, which advocates had urged the CFPB to include. It also does not apply to credit reports used for non-lending purposes, such as employment and tenant screening

“Medical debt shouldn’t harm credit records regardless of how it shows up,” said April Kuehnhoff, senior attorney at NCLC. “And it shouldn’t damage the ability of Americans to get a job or an apartment.”

Additional Quotes

“When banking gets mixed up with health care, it causes a lot of heartache,” said Adam Rust, director of financial services for the Consumer Federation of America. “The CFPB’s new rule places a sensible boundary between the two. People often pay medical debt they know they do not owe to protect their credit scores. Others avoid seeking medical care, fearing it will harm their creditworthiness. The new rule means that medical debt collectors cannot weaponize the credit reporting system to their advantage, and sick people will not forego treatment just because they want to borrow money in the future.”

“The crushing financial burdens of medical debt should not continue to undermine people’s ability to take out a loan or qualify for a mortgage,” said Christine Chen Zinner, senior policy counsel at Americans for Financial Reform. “While today’s rule will help over 100 million people saddled with medical debt, this rule will critically lessen the negative credit impacts stemming from decades of racist housing, employment, healthcare, and other policies and practices that have left Black and Latine households with higher amounts of medical debt.”

“With this rule requiring removal of medical bills from credit reports, the CFPB protects millions of medical debt-strapped Americans from certain additional financial struggles triggered by the archaic credit reporting system,” said Christine Hines, senior policy director at the National Association of Consumer Advocates.

“Finalizing this rule is a big win for Mainers and people all over the country,” said Nora Flaherty-Stanford of Maine People’s Alliance. “More than 40% of Mainers say they’ve taken on medical debt in the last five years, and for most of them, it’s still hanging over their heads. We all know that’s not right, and as we celebrate this good news, we’re calling on our members of Congress to stand strong in supporting this rule and the CFPB.”

“Someone’s history of unexpected medical debt has no correlation with their willingness or ability to repay future bills, so it should have no bearing on a person’s access to credit, an apartment or a job,” says Ruth Susswein, Consumer Action’s director of consumer protection.

“Medical debt burdens millions of families across the country and can unfairly tarnish a person’s credit record, making it more difficult to qualify for an affordable loan, get a job, or even rent an apartment,” said Chuck Bell, advocacy program director for Consumer Reports. “Many consumers have medical debt on their credit reports that is inaccurate or under dispute because our medical billing and insurance reimbursement system is so complex and confusing. No one’s credit record should be ruined by medical debt since it’s not a reliable predictor of credit risk. The CFPB’s ban on medical debt reporting provides critical protection to consumers and will help ensure they can get the health care they need without fearing that their credit record will be damaged beyond repair.”

“This new rule is good news for at least 14 million people – including financially responsible families that have accumulated medical debt from unpredictable health issues, high out-of-pocket costs, insurance claim denials and billing errors,” said Patricia Kelmar, senior director of health care campaigns for U.S. PIRG. “We’ve known for years that medical debt is not predictive of credit-worthiness. The new rule builds on the CFPB’s important work on medical debt reporting and is yet another example of how the CFPB protects consumers from unfair practices.”

“Banning the reporting of medical debt will end the weaponization of credit reporting against those who are unlucky enough to get sick or injured and run up bills they cannot afford to pay,” said Renée Steinhagen, executive director, New Jersey Appleseed Public Interest Law Center and a member of the NJ for Healthcare Coalition. “Thanks to the new CFPB rule, they need no longer worry about their credit being ruined, which can make it harder to buy or rent a home or a car or even interfere with getting a job.”

“One in five New Jerseyans struggle with repaying medical debt,” said Beverly Brown Ruggia, Financial Justice Program director at New Jersey Citizen Action. “In a nation where good credit is essential for accessing housing, employment, and even medical care itself, it is unconscionable that anyone should face financial ruin and lose access to these basic necessities simply because they or a family member got sick. With this rule, the CFPB has stepped in once again to protect the most vulnerable among us from unfair treatment and potential financial devastation.”

“This landmark rule ensures consumers are no longer unfairly penalized for medical debt,” said Jennifer Holloway, staff attorney leading the Medical Debt Project at Tzedek DC. “By removing medical debt from credit reports, the CFPB helps individuals and families access housing, employment, and credit opportunities and advances racial and disability justice. This rule recognizes that access to medical care should not result in lifelong financial setbacks and will improve patients’ well-being by reducing stress and anxiety. Ultimately, this is a vital step toward supporting healthier and more financially secure communities.”

“The magnitude of medical debt in America is crippling:100 million Americans carry medical debt that is not caused by profligate spending, but often by medical emergencies. Thus punishing Americans who carry this debt by harming their credit scores, forcing them to turn to predatory lending if they need a car or home loan multiplies the harm,” said Sally Greenberg, chief executive officer at National Consumer League. “The CFPB’s rule stopping credit reporting agencies from sharing medical debt with lenders will prevent adding to the burden of the 15 million Americans with lowered credit scores due to medical debt. NCL supports this important rule.”

“This rule is a significant win for struggling Maryland families,” said Marceline White, executive director of Economic Action Maryland Fund (Economic Action). “More than 876,000 Maryland households have a medical debt they are unable to repay. No one should have their credit downgraded because they or a loved one fell ill and sought medical care.” 

“NALCAB – the National Association for Latino Community Asset Builders applauds the Consumer Financial Protection Bureau (CFPB)’s final rule banning medical debt from credit reports. According to a report by the Urban Institute, adults who live in communities where the majority of the population are people of color are more likely to have medical debt in collections reported on their credit reports.  Today’s announcement will help boost the economic trajectory of Latinos and therefore further stimulate economic growth,” said Clarinda Landeros, Director of Public Policy, NALCAB. 

“As we work to create a country where healthcare is a human right, we must eliminate the many burdens of a healthcare system that puts profit over people,” said Katie Goldstein, Director of Housing and Healthcare Campaigns at Popular Democracy. “Too often, our people risk financial ruin when they seek medical care due to high costs and long term medical debt that impacts credit ratings and makes it more difficult to secure housing and employment. By eliminating medical debt from credit scores, today’s much-needed CFPB ruling will ease some of these barriers, will protect folks from predatory debt collectors, and will encourage more people to seek medical care with less fear of financial repercussions.”

“The National Fair Housing Alliance applauds the Consumer Financial Protection Bureau (CFPB)’s final rule banning medical debt from credit reports,” said Nikitra Bailey, executive vice president of the National Fair Housing Alliance. “Medical debt devastates the budgets of millions of families, especially those living in the South making it difficult for people living in the region to secure quality credit opportunities to purchase a home, start a business, or finance a car to get to work. It also disproportionately impacts Black and Latino consumers who are more likely to lack wealth to immediately address surprise medical expenses because they were long denied fair housing and lending opportunities. These medical debts can then result in collections reported on their credit reports, although the medical debits are not an accurate reflection of the consumer’s ability or willingness to repay debts. The CFPB’s final rule will help provide a more equitable path to access to credit and therefore further stimulate economic growth, especially in the South.”

“It surprises Alaskans when health insurance fails to protect them from the extremely high costs of healthcare in our state,” explained Claire Lubke, economic justice lead at Alaska Public Interest Research Group. “All it takes is an accidental visit to an out-of-network provider and we end up in a situation where 40% of Alaskans are holding medical debt, including military members and those with access to tribal health services. Allowing medical debt on credit reports punishes Alaskans for receiving medical care they need and often don’t realize is uncovered until it’s too late. AKPIRG commends the CFPB for improving access to necessary financial services for Alaskans who are working hard to overcome medical debt.”

“Medical debt often stems from unpredictable, unavoidable circumstances and shouldn’t stop access to financial opportunities. In Oregon, 30% of residents have incurred medical debt in the last two years. Of those residents, 85% report significant impacts, from increased stress and anxiety to financial hardship and delayed medical care. Oregon Consumer Justice applauds the Consumer Financial Protection Bureau for finalizing this vital rule addressing medical debt on credit reports,” says Jagjit Nagra, executive director of Oregon Consumer Justice. “This rule is a critical first step in protecting consumers and promoting financial equity. In Oregon’s upcoming legislative session, we look forward to championing legislation that will further extend this rule’s impacts to exclude medical debt in employment and tenant screening and medical debt incurred using medical credit cards.”

“This rule not only relieves patients and their loved ones from the financial burden of medical debt on their credit reports, but also relieves them from the real and harmful physical and mental impacts of medical debt on their health,” said David Zhao, Equal Justice Works Fellow, sponsored by Amgen Inc. and Munger, Tolles & Olson LLP, at Public Counsel. “In Los Angeles, one in ten adults is substantially burdened by medical debt, leading them to be 2-3.5 times more likely to be food insecure, forgo prescriptions, and be unstably housed. Under the CFPB’s new rule, patients can break the cycle of delaying further medical care due to the stress and anxiety of having their medical bills show up on their credit reports.”

Related Resources

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About the National Consumers League (NCL) 

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL’s latest podcast highlights the disparities with the 340B drug pricing program

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January 6, 2025

Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

Washington, DC – The National Consumer League (NCL) has released a new episode of its We Can Do This podcast, shedding light on the inequities and lack of transparency surrounding the 340B Drug Pricing Program. This federal initiative was designed to provide medications at reduced prices to low-income patients, but it has been manipulated by large healthcare entities to generate billions in profits with minimal oversight. As a result, the program’s intended beneficiaries—low-income patients—are often forced to pay full price for medications they cannot afford.

In this episode, NCL’s CEO Sally Greenberg is joined by Amy Hinojosa, President and CEO of MANA, a National Latina Organization, and founding member of the Health Equity Collaborative, and Dr. Ge Bai, an expert on healthcare accounting, finance, and policy at Johns Hopkins University about the shocking lack of transparency around a program that has more than doubled in cost to taxpayers reaching more than $120 Billion in 2022. Both experts emphasize the importance of accountability to ensure that the 340B program truly benefits those it was designed to serve.

“The 340B program was created as a ‘buy-low-sell-low’ initiative. But over the years, it has evolved into a ‘buy-low-sell-high’ program,” said Dr. Ge Bai. “Hospitals can still buy drugs at a low price, but when they sell those drugs, they do so at full price—without any discount. This allows hospitals to reap substantial profits from the difference between the discounted purchase price and the high selling price.”

The episode also discusses the bipartisan 340B ACCESS Act (HR 8574), proposed legislation aimed at restoring transparency and accountability to this critical healthcare program.

The 340B Access Act (HR 8574) seeks to:

  • Ensure that discounts directly reduce patient costs
  • Modernize contract pharmacy arrangements
  • Strengthen eligibility requirements
  • Implement public reporting measures
  • Prevent abuse by middlemen

“Entering this new legislative session, there is a real opportunity to leverage bipartisan support and push the 340B ACCESS Act across the finish line,” said NCL CEO Sally Greenberg. “The bottom line is that this program needs stronger guardrails to ensure that everyday Americans—especially those in underserved communities—have access to affordable medications.”

Additional Resources:

Dr. Ge Bai, PhD, CPA, Johns Hopkins University: Do Nonprofit Hospitals Deserve Their Tax Exemption?

340 B State Press Releases

 

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About the National Consumers League (NCL) 

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Hospitals and PBMs hijack discount drug program

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January 6, 2025: On this episode of NCL’s “We Can Do this” podcast, National Consumers League CEO Sally Greenberg speaks with Amy Hinojosa, President and CEO of Mana, a National Latina Organization, and Dr. Ge Bai, an expert on health care accounting, finance, and policy at Johns Hopkins University, regarding a shocking lack of transparency for a program that has more than doubled in cost reaching more than $120 Billion in 2022.

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