Senate Passes Medical Debt Bill

The Senate passed a bill unanimously yesterday that is intended to help protect patients from unfair debt collection practices for medical debt and to inform them of programs that help allieviate the burden of the debt.

Senate Bill 8S2 implements a number of safeguards for patients, including: 

• Prohibiting the charging of interest and late fees
• Requiring facilities to offer reasonable payment plans
• Limiting the sale of debt to debt collectors
• Providing a “grace period” before certain collection actions may be taken
• Limiting liability for the medical debt of others
• Preventing the reporting of medical debt to consumer credit reporting agencies for at least one year after the debt was incurred

According to a Kaiser Family Foundation poll conducted last year, nearly 1 in 5 adults across the country are currently on some kind of financing plan to pay off a medical or dental bill. 

Senate Bill 8S2 – Protecting Patients from Unfair Medical Debt Collection Practices	Currrent Status – Senate passed 20-0-1. Now in the House Economic Everything Committee 6/15/23
House Sponsors – Williams, Heffernan, Johnson, Lambert	Senate Sponsors – Mantzavinos, Hansen, McBride, Townsend
House Yes Votes –	Senate Yes Votes – Brown Hansen Hoffner Huxtable Lockman Mantzavinos McBride Paradee Pinkney Poore Sokola Sturgeon Townsend Walsh // Buckson Hocker Lawson Pettyjohn Richardon Wilson
House No Votes –	Senate No Votes – None
House Absents or Not Voting –	Senate Absent or Not Voting – Gay

“We have all heard horror stories about coworkers, neighbors, or family members who have incurred tens or even hundreds of thousands of dollars in unforeseen medical expenses. Even for those who have medical insurance, it just takes one accident or emergency procedure for insurmountable medical bills to pile up,” said Sen. Mantzavinos, acknowledging that many insured Americans have a health insurance plan with a high deductible, because they don’t expect to incur many medical expenses. “This bill is designed to show patients some grace and compassion when navigating the payment of their medical expenses.”