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Legislative Efforts in Multiple States Aim to Alleviate Medical Debt for Patients
In a concerted effort to address the growing issue of medical debt, legislators in six states have recently enacted measures aimed at providing financial relief to patients. This trend was highlighted in a report by United States of Care, a…
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Key points
- Six states have enacted laws to address medical debt in 2023.
- Legislation includes interest rate caps and protections against debt collection practices.
- Massachusetts proposes measures to stop medical debt from affecting credit reports.
NewsWK — In a concerted effort to address the growing issue of medical debt, legislators in six states have recently enacted measures aimed at providing financial relief to patients. This trend was highlighted in a report by United States of Care, a nonpartisan think tank, which reveals that a significant number of Americans—46%—struggled to pay for medical care in the past year, regardless of their insurance status.
States such as Indiana, Louisiana, Maine, Oregon, and Washington have passed laws this year concerning medical debt, while Hawaii has a measure awaiting the governor’s approval. Additionally, other states are considering similar legislation, indicating a widespread legislative focus on this issue.
Notable measures include:
- Louisiana: A new law limits interest rates on medical debt to 3% for medically necessary care, defined as essential services or medications.
- Washington: Unpaid medical bills cannot be sent to debt collectors for at least 120 days if the patient is a pedestrian or cyclist struck by a vehicle.
- Maine: Debt collectors are prohibited from garnishing wages for medical debt.
- Indiana: Hospitals are required to inform patients about available financial assistance programs before initiating debt collection.
- Hawaii: A bill for medical debt forgiveness is pending the governor’s signature.
- New Mexico: Hospitals are banned from charging facility fees for preventive outpatient care and telehealth services.
Further initiatives are underway in other states. For instance, Massachusetts Governor Maura Healey has proposed legislation to prevent medical debt from impacting consumer credit reports.
As medical expenses continue to burden many households, these legislative measures reflect a growing awareness and response to the financial challenges faced by patients.
Based on reporting by Nada Hassanein originally published by Stateline. Read the original story.
