Preheat oven to 425°F. Cook sausage in large skillet over MEDIUM-HIGH heat 8-10 minutes or until thoroughly cooked, stirring frequently; drain. Place in medium bowl.
Add cream cheese and cheddar cheese; mix well.
Cut peppers lengthwise in half; discard seeds. Fill each pepper with a generous portion of sausage mixture; press lightly into peppers to secure. (Filling should mound slightly above top edges of peppers.)
Place on lightly greased baking sheet or in broiler pan.
Bake 10 minutes or until peppers are crisp-tender and filling is lightly browned.