Patient Debt Relief Act
House Bill Would Ban Wage Garnishment, Liens for Medical Debt at Medicare Hospitals
Legislative Progress
Key Points
- Hospitals would be banned from taking extreme measures to collect medical bills, such as placing liens on homes or garnishing wages. These rules would apply to all hospitals that accept Medicare starting in 2028.
- Hospitals must screen patients for financial assistance before trying to collect payment. For families earning less than 250% of the poverty level, hospitals would be prohibited from charging interest or selling the debt to outside collection agencies.
- The bill creates a $100 million grant program for a nonprofit organization to buy up and forgive medical debt for people whose bills are more than 5% of their income or who earn less than 400% of the poverty line.
- Hospitals would have to offer repayment plans where monthly payments are capped at 4% of a person's monthly income. They also cannot sell a patient's debt to a collector until at least one year after the bill was due.
- To ensure hospitals follow these rules, the government would conduct annual audits and set up an online portal where patients can report unfair collection practices. Hospitals that break the rules could face fines up to $1 million.
Impact Analysis
Personal Impact
Life & Work
Small business owners who often purchase their own health insurance (or go without) can face substantial medical debt. The bill's protection against home liens is particularly important since many small business owners use their homes as collateral for business loans. The ban on wage garnishment and the income-based repayment plan also help protect their ability to reinvest in their businesses.
Programs
Disabilities
Milestones
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
Patient Debt Relief Act
Data Sources
Sponsor
Cosponsors
(17)Analysis generated by AI. Always verify with official sources.