Michigan lawmakers are introducing legislation they said will reduce medical costs for patients. The bills would strengthen rules for financial assistance programs in hospitals and remove medical debt from consumer credit reports.
Senator Sarah Anthony (D-Lansing) is the chair of the Senate Appropriations Committee. She said the priority is to make life more affordable for people across the state.
“Healthcare costs are one of the biggest expenses for families,” Anthony continued. She said that roughly 700,000 Michigan residents have some type of medical debt, which places a particularly heavy burden on moderate and low income families.
“We’re proposing policy solutions that can alleviate medical debt,” she said.
Senate Bills 449-451 would require hospitals to offer financial assistance to patients who owe the hospital one or more unpaid medical bills that amount to more than 30% of their annual income. The legislation would also offer up to a 100% discount for uninsured patients whose annual income is at or below 350% of the federal poverty level.
Anthony said if hospitals did not comply with the legislation, they could be subject to violation through the Attorney General’s office.
The Michigan Health and Hospital Association says hospitals already have financial assistance programs, and are committed to caring for all patients.
“We want to make sure we’re looking at the ability of the individual to pay,” Anthony said. “We know that so many people just get trapped in a cycle of debt, and it can spiral into bankruptcy because of an unforeseen medical issue.”
“Just because someone has insurance, doesn’t mean they’ll be able to pay tens of thousands of dollars,” Anthony added. “All of this is designed to meet patients where they are.”
The legislation would also remove medical debt from consumer credit reports. Anthony said the goal is to protect residents from long-term financial harm and impacted credit scores just because they cannot afford medical care.
The legislation passed unanimously in the Senate Health Policy Committee, and will be sent to the senate floor. If passed there, it could be taken up next by the state house.
“Everyone deserves high quality, affordable healthcare,” Anthony said. “And that’s why you’re seeing this effort have bipartisan support.
