LANSING — The Michigan Legislature has approved a package of bills designed to reduce the financial impact of medical debt and expand protections for patients across the state.
The legislation would require hospitals to create financial assistance programs for patients and place new limits on how medical debt can be reported and collected. The collection of Bills include Senate Bills 449, 450, 451, 701 and 702.
Under the plan, hospitals would be required to develop financial assistance programs by January 1, 2027. The programs must determine eligibility using income guidelines tied to federal poverty levels and provide discounts of up to 100% for some uninsured patients.
Hospitals would also be required to clearly publish information about those assistance programs on billing statements, prior to sending debts to collections, and on hospital websites.
The legislative package also includes new limits on how medical debt can be pursued by hospitals and collection agencies.
Hospitals and medical debt collectors would be restricted from using certain aggressive collection practices and would be required to wait a period of time after issuing a final bill before taking major collection actions.
Another provision would prevent most medical debt from appearing on consumer credit reports, which supporters say could help protect residents’ credit scores and improve access to housing, loans, and employment opportunities.
The legislation also updates Michigan’s Consumer Protection Act to classify violations of the new medical debt protections as unlawful business practices, allowing enforcement through the state attorney general and civil legal actions.
Supporters of the bills say the measures are intended to provide relief for patients facing high medical costs while increasing transparency around hospital billing and collections.
The legislation now heads to Governor Gretchen Whitmer for consideration.