Tlaib, Sanders, Khanna, Merkley Introduce Legislation to Eliminate Medical Debt for Millions of Working Class Americans
WASHINGTON, D.C. — Reps. Rashida Tlaib (MI-12) and Ro Khanna (CA-17) with Sens. Bernie Sanders (I-Vt.) and Jeff Merkley (D-Ore.) introduced the Medical Debt Cancellation Act, legislation to eliminate all $220 billion in medical debt held by millions of Americans, wipe it from credit reports, and drastically limit the accrual of future medical debt.
The
medical debt crisis has exploded in recent years, decimating Americans’
bank accounts and deterring them from seeking health care. Among all
working-age adults in the United States, an estimated 27 percent are currently carrying medical debt of more than $500, and 15 percent have medical debt loads of $2,000 or more.
“No one chooses to get sick and seeking essential medical care should never keep families in poverty. Yet millions of people—disproportionately Black and/or disabled—are burdened with medical debt brought about by our broken health care system,” said Congresswoman Tlaib. “Many families are forced to file for bankruptcy, while others struggle to access necessities like housing or transportation because of debt collections listed on their credit report. Imagine being denied housing while wrestling with a major medical issue and mounting bills. This is unconscionable. I am proud to stand with Representative Khanna and Senator Sanders in cancelling medical debt and bringing us one step closer to making health care a human right.”
“This is the United States of America, the richest country in the
history of the world. People in our country should not be going
bankrupt because they got cancer and could not afford to pay their
medical bills,” said Senator Sanders. “No one in
America should face financial ruin because of the outrageous cost of an
unexpected medical emergency or a hospital stay. The time has come to
cancel all medical debt and guarantee health care to all as a human
right, not a privilege.”
“Our current health care system is bankrupting Americans. I’ve heard
heartbreaking stories from constituents who have skipped doctor’s
appointments due to cost, who have lost loved ones because they couldn’t
afford their medication, and who aren’t able to buy a house or get a
job because of crippling medical debt,” said Congressman Khanna. “I’m
so proud to join Senator Sanders to cancel medical debt, wipe it from
credit reports and reform our system going forward. This bill would
transform the lives of millions of Americans and I couldn’t ask for a
better partner in the fight.”
“Patients should be able to get the
care they need when facing illness or injury without fear of financial
ruin. America’s medical debt crisis continues to harm millions, and
Congress must do all it can to relieve patients of this tremendous
burden,” said Senator Merkley. “Our Medical Debt
Cancellation Act sets up a grant program to cancel patient medical debt.
This bill is a common-sense step forward that will help families in
Oregon and across the nation.”
Millions of Americans struggle to
pay their medical bills every year or are paying off medical debt. In
2018 alone, 8 million people were pushed into poverty due
to medical expenses. Nearly 75 percent of adults in the U.S. say they
are worried about being able to afford unexpected medical bills and nearly one out of every four people say they have skipped medical treatment because of concerns about cost, including one in five adults with health insurance coverage.
Medical
debt can ruin credit scores and make it challenging to get a loan, take
out a mortgage, or buy a car. Today, nearly four in ten American adults
report having health care debt, and one out of every 12 American adults
report having significant debt. Women, Black Americans, people with
disabilities, and those living in rural areas and the South are hit the hardest. As a result of the broken U.S. health care system, one in three Black Americans have past due medical bills, as well as nearly half of American women, and nearly half of adults living in the South.
The problem is only getting worse. Research from Yale and Stanford revealed a
recent spike in hospitals, including non-profit and public hospitals,
bringing medical debt lawsuits against patients over unpaid medical
bills – disproportionately impacting Black and low-income patients and
patients living in rural areas.
In support of the lawmakers’ legislation, medical debt expert and economist at Stanford University Dr. Neale Mahoney, said:
“Evidence shows that earlier is better when it comes to medical debt
relief. This bill cuts off medical debt at the source by requiring
hospitals to uphold their obligation to provide charity care to eligible
patients who cannot afford to pay and supports hospitals so they can
forgive debt before it gets sold to debt collectors.”
“Medical
debt and aggressive collection practices cause our patients to delay
necessary care and destroy the trust necessary for healing
relationships,” said Dr. Luke Messac, Harvard Medical School emergency physician and historian. “Most
health care workers do not want to be part of a system that does such
damage to our patients’ lives. This bill helps prevent this harm by
cancelling debt, improving access to financial assistance, and
preventing medical bills from ruining credit scores.”
If enacted, the Medical Debt Cancellation Act would:
- Amend the Fair Debt Collection Practices Act, making it illegal to collect medical debt incurred prior to the bill’s enactment and creating a private right of action for patients.
- Amend the Fair Consumer Credit Reporting Act, effectively wiping medical debt from credit reports by preventing credit reporting agencies from reporting information related to debt that arose from medical expenses.
- Create a grant program within the U.S. Department of Health and Human Services to cancel medical debt, prioritizing low-resource providers and vulnerable populations.
- Amend the Public Health Service Act, updating billing and debt collection requirements to limit the potential for future debt to be incurred.
Canceling medical debt is a common sense position overwhelmingly supported by the American public. That support is nonpartisan with 84 percent of Republicans in favor of canceling it. In fact, when polled on which types of debt Americans would like to see forgiven, two-thirds of Americans pointed to medical debt.
The
legislation is endorsed by the Center for Economic and Policy Research,
Center for Health and Democracy, Center for Popular Democracy, Just
Care USA, Public Citizen, and Social Security Works.
Read the bill text, here.
Read the bill section-by-section, here.
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