Lawmakers in at least six states have approved measures this year related to patient medical debt. (Photo: Whitney Downard/Indiana Capital Chronicle)
Lawmakers in at least six states have approved measures related to patient medical debt this year, according to a report on legislative policy trends released Wednesday by the nonpartisan think tank United States of Care.
Many Americans have trouble financing health care. Recent questionnaire found that 46% of adults, regardless of health insurance status, reported having difficulty paying for health care in the past year.
Indiana, Louisiana, Maine, Oregon and Washington passed medical debt laws this year. Hawaii lawmakers approved the measure, which awaits the governor’s signature, and other states have bills in committee.
The report found that in 18 states, lawmakers have introduced or approved measures related to preserving free preventive care, and more than a dozen states have considered hospital facility fee laws.
Louisiana has passed a law limiting the interest that providers and debt collectors can charge on medical debts. The novel rule limits the annual interest rate on medical debt for “medically necessary care” to 3%. The law defines such care as services or medications deemed necessary by a licensed health care provider to prevent, diagnose, or treat a disease or its symptoms.
Under Washington State’s novel law, unpaid medical bills cannot be assigned to a debt collector for at least 120 days after the first statement is issued if the patient is a pedestrian or cyclist who was struck by a motor vehicle. Maine law prohibits debt collectors from paying or garnishing wages for medical debts. The Hawaii Legislature has passed a medical debt relief bill that awaits the governor’s signature.
Indiana passed a bipartisan measure requiring hospitals to inform patients about financial assistance programs they may be eligible for before initiating collections. The law also requires that such information be posted in hospitals. It also prohibits health care providers from using automated tools to make health care claims without first reviewing the claims by the health care provider.
Last year, Democratic Alaska state Rep. Genevieve Mina introduced legislation that would prevent medical debt from showing on patients’ credit reports. Michigan lawmakers have introduced a similar bill that has been moved to second reading. And on Tuesday, Massachusetts Democratic Gov. Maura Healey proposed action this would prevent medical debts from being reported to consumer credit agencies.
New Mexico passed a bill prohibiting hospitals from charging fees for outpatient care, vaccinations and telehealth, while retaining fees for inpatient and emergency care.
Stateline reporter Nada Hassanein can be reached at: nhassanein@stateline.org.
This story was originally produced by state linewhich is part of States Newsroom, a nonprofit news network that includes Pennsylvania Capital-Star, and is supported by grants and a coalition of donors as a 501c(3) public charity.
