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Congress·In Committee·20 days ago

House Bill Would Ban Wage Garnishment, Liens for Medical Debt at Medicare Hospitals

Also known as: Patient Debt Relief Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

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.
HealthcareEconomy Finance

Milestones

2 milestones2 actions
Feb 10, 2026House

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.

Feb 10, 2026

Introduced in House

Related News

1 article
Quiver Quantitative·7 days ago

Representative Gabe Vasquez Introduces H.R. 7478: Patient Debt Relief Act

The Patient Debt Relief Act (H.R. 7478) mandates that hospitals participating in Medicare comply with new financial assistance standards by 2028. It bans liens on homes and wage garnishment, while prohibiting interest charges for families earning less than 250 percent of the poverty level.

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Source Information

Document Type

Congressional Bill

Official Title

Patient Debt Relief Act

Bill NumberHR 7478
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred 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.

Sponsor

Cosponsors

(17)
D: 17

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.