Legislators in at least six states approved measures related to patient medical debt this year, according to a report from United States of Care. Indiana, Louisiana, Maine, Oregon, and Washington enacted laws addressing medical debt. Hawaii legislators also approved a measure related to medical debt that awaits the governor's signature.

Louisiana enacted a law that limits the interest that providers and debt collectors can charge on medical debt. This law caps the annual interest rate for medically necessary care at 3%. Medically necessary care is defined by the law as services or medications a licensed health care provider deems necessary to prevent, diagnose, or treat an illness or disease symptoms.

Maine's law prohibits debt collectors from garnishing salaries or wages for medical debt. In Washington, new legislation established that unpaid medical bills cannot be assigned to a debt collector for a minimum of 120 days after the initial billing statement if the patient is a pedestrian or bicyclist struck by a motor vehicle.

Indiana enacted a measure requiring hospitals to inform patients of financial assistance programs before debt collection begins. This law also mandates that information about financial assistance programs be posted inside hospitals. Additionally, the Indiana law prohibits health care providers from using automated tools to submit health benefits claims without a provider first reviewing them.

New Mexico enacted a law prohibiting hospitals from charging facility fees for preventive outpatient care, vaccinations, and telehealth. The New Mexico law preserves facility fees for inpatient and emergency care. Legislators in 18 states also introduced or approved measures related to preserving no-cost preventive care, and lawmakers in a dozen states weighed legislation concerning hospital facility fees. Last year, Alaska Democratic State Representative Genevieve Mina introduced legislation to prevent medical debt from appearing on patients' credit reports. Michigan lawmakers introduced a similar bill, which has been referred for a second reading. Massachusetts Democratic Governor Maura Healey also proposed an action on Tuesday that would stop medical debt from being reported to consumer credit agencies.

Why It Matters

These legislative actions emerge as a large portion of the adult population reports difficulty with medical costs. A recent survey found that 46% of adults reported struggling to pay for medical care last year. The measures enacted or advanced by various state legislatures aim to provide financial protections for patients regarding medical debt, interest rates, debt collection practices, and facility fees for certain services.