SB 701 – Medical Debt Protection Act

The cost of healthcare has increased drastically, and the high price of care is affecting families across the state. Nearly 700,000 Michiganders carry medical debt.

The factors that lead to this debt are complicated. I want to be clear that while I do not believe the government can or should adopt policies to simply “wipe it away,” I do believe we should take meaningful steps to reduce the likelihood that families will end up buried in medical debt while also ensuring that debt is handled fairly.

Medical Debt Protection Act

This year, I introduced Senate Bills 701 and 702 to create safeguards around how medical debt is handled in Michigan, especially in the most extreme cases.

These bills would:

• Stop healthcare facilities and debt lenders from charging interest or late fees on medical debt until 90 days after the final invoice’s due date.
• Limit late fees and interest to no more than 3% of the total medical debt annually.
• Protect individuals from arrest, property foreclosure and wage garnishment over unpaid medical debt.
• Force a healthcare system to refund a patient within 60 days if the amount paid exceeds the amount owed after financial assistance is applied.

These bills are part of a broader set of healthcare reforms I have advanced, including medical price transparency and standardization and mandatory communication about payment options.

Together, these reforms can help all Michiganders access better care, reduce the likelihood of medical debt and protect those who do face that difficult outcome.

All of these policies have passed the Michigan Senate with overwhelming bipartisan support but have yet to become law. Your voice is greatly appreciated as I advocate to finish the job and get these bills signed into law.

Use the form below to share your thoughts on my legislation to reduce the burden of healthcare costs. I look forward to reading your thoughts on this policy.