LANSING, MI (WTVB) – In a display of bipartisanship, the Michigan State Senate voted unanimously Wednesday , to pass a comprehensive package of bills aimed at reining in the rising costs of medical debt in Michigan.
Co-Sponsored by Senator Jonathan Lindsey (R-Coldwater) and Senator Sarah Anthony (D-Lansing), the legislation includes the Medical Debt Protection Act (Senate Bill 701) and the Hospital Financial Assistance Act, which passed with a unanimous 35-0 vote.
Lindsey described the current health care landscape as an “overpriced, underperforming disaster” and emphasized that these reforms are a critical step toward enhancing patient outcomes and reducing the financial burden on the estimated 700,000 Michiganders currently struggling with medical debt.
The approved measures introduce several key protections for patients, most notably by capping interest rates and late fees on medical debt at 3% per year.
The bills also prohibit “extraordinary” collection actions, such as wage garnishments, home foreclosures, or arrests, and bar consumer reporting agencies from including medical debt in credit reports.
Furthermore, the legislation mandates that hospitals develop standardized financial assistance programs to offer discounts to uninsured patients.
Following its successful passage in the Senate, the package now moves to the Michigan House for further consideration.
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