LANSING, MI (WTVB) – A significant bipartisan legislative package aimed at providing relief to Michigan residents burdened by medical debt is advancing through the state Senate.
The three-bill package, known as the Medical Debt Protection Act, would implement a range of consumer protections, including prohibiting medical debt from appearing on consumer credit reports and capping interest and late fees at 3% annually.
Sponsored jointly by Sen. Sarah Anthony (D-Lansing) and Sen. Jonathan Lindsey (R-Coldwater), the legislation passed out of the Senate Health Policy Committee earlier this month and is now awaiting a full vote on the Senate floor.
The legislation (Senate Bills 449, 450, and 451) aims to standardize and codify hospital financial assistance programs (FAPs) across the state.
Under the proposed laws, hospitals would be required to provide up to a 100% discount on care for uninsured patients whose income is at or below 350% of the federal poverty guidelines, and for any patient whose medical bills exceed 30% of their annual income.
Lindsey emphasized the need for action,
The changes have garnered support from health care professionals and consumer advocates who note that even insured families often face high deductibles and opaque billing, making medical debt a leading cause of bankruptcy.
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