This week, the Senate Finance, Insurance, and Consumer Protection Committee heard testimony on bipartisan legislation creating protections for those with medical debt. In Michigan alone, approximately 700,000 people have medical debt, while the number nationwide grows to more than 100 million.
Key Points:
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- Senate Bills 701 and 702 were introduced by Senators Jonathan Lindsey (R-Coldwater) and Sarah Anthony (D-Lansing), respectively.
- Prohibits charging interest or late fees on medical debt until 90 days have passed after the due date.
- Prohibits a large healthcare facility or medical debt buyer from charging a late fee or interest that exceeds 3% of the amount of debt per year.
- The legislation would prohibit collection actions such as arrest, property liens, or garnishing wages. The proposal does allow for these circumstances, in certain cases, once 120 days have passed, and with a 30-day notice.
- A healthcare facility must refund an overpayment within 60 days.
Next Steps:
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- The bills remain before the committee, awaiting further consideration.
