LANSING, Mich. — A series of bicameral, bipartisan bills aimed at reducing the financial burden patients often face after receiving medical treatment was approved by the Michigan House of Representatives Committee on Health Policy on Wednesday morning.
“Medical debt needs to be viewed through a different lens than traditional debts. Medical debt is commonly a direct result of a tragic, unexpected accident and people are often faced with mountains of unaffordable costs that significantly compound an already difficult time,” said Sen. Jonathan Lindsey, R-Coldwater, one of the bill package’s leading sponsors in the Senate.
“The problems caused by medical debt and the egregious costs associated with care — which are often hidden or difficult to discern — are issues that need to be attacked from several different angles if we’re going to pursue sensible policies that actually help people. These bills are just one of many much-needed steps I am working on.”
Lindsey was joined by Sen. Sarah Anthony in introducing Senate Bills 449, 450, 451, 701 and 702, which significantly rein in debt collection practices like personal liens, wage garnishment and home foreclosures, while also capping interest rates applied to medical debt.
The bills would also require all Michigan hospitals to create financial assistance programs to improve options for families facing a medical emergency, which is already a federal requirement for nonprofit hospitals.
Upon approval by the House committee, SBs 449, 450, 451, 701 and 702, along with companion bills introduced in the House by Reps. Kathy Schmaltz, Steve Frisbie, Karl Bohnak, Angela Rigas and Laurie Pohutsky, now move to the House floor for final consideration from the full chamber.
“Good policy promotes itself and when we introduce meaningful legislation that helps people, we see that legislation introduced across the chamber,” Lindsey said. “These packages will deliver real results for the people facing medical debt, and I applaud my colleagues in the House for recognizing the importance of this legislation.”
Lindsey noted these bills are far from a complete solution and that significantly more reforms need to be passed into law.
“I am still working to get my medical price transparency legislation passed so patients can compare the cost of healthcare before visiting their doctor,” Lindsey said. “Access to pricing information allows patients to make medical decisions that are more suited for them and their families.”
Senate Bill 95, which is currently awaiting a final vote in the Senate prior to going to the governor to be signed into law, would require hospitals to publicly disclose the costs of treatments and operations and prohibit the collection of debts if a hospital is not in compliance with price transparency laws.
“Driving down costs and improving options and health outcomes for families has been a top priority of mine since being elected, and I will keep advocating to get each of these reforms signed into law,” Lindsey said.
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