States Continue to Enact Protections for Patients with Medical Debt

The blog details recent state actions to protect patients from medical debt. The Biden administration recommended state-level actions to prevent debt accumulation, limit aggressive debt collection practices, and purchase and eliminate existing medical debt. While most states have not passed laws to prevent new medical debt, many have enacted protections for those already in debt, such as capping interest rates, offering reasonable payment plans, and restricting debt reporting to credit agencies. New York enhanced its financial assistance standards, and states like Delaware and New Jersey implemented further regulations to curb debt lawsuits and wage garnishments. Some states have also initiated medical debt forgiveness programs. Despite these measures, there is a continued need for upstream solutions to prevent medical debt from accruing initially.

Opens on The Commonwealth Fund