Representative Mary Ann Shallcross Smith has introduced a legislative proposal aimed at shielding vulnerable residents of Rhode Island from detrimental medical debt collection practices.
The bill, labeled 2024-H 7103, seeks to bar the credit bureau reporting of consumers’ medical debt and the initiation of execution and attachment procedures against a consumer’s primary residence for judgments rooted in medical debt.
Addressing the media, Representative Shallcross Smith (D-Dist. 46, Lincoln, Pawtucket) emphasized the urgency of addressing the escalating issue of medical debt. “Medical debt is a growing and persistent problem that so many of our friends and family consistently face,” she stated. “Unlike other types of debt, where people spend beyond their means, medical debt occurs because people have the misfortune of getting sick. This bill looks to provide compassion and relief to Rhode Islanders by instituting common sense reforms, specifically by preventing liens against people’s homes and the garnishing of wages.”
The proposed legislation includes provisions to cap the interest on a judgment at 3% and render any medical debt furnished to a credit bureau void.
During a recent House Judiciary Committee meeting, Troy Peck from Cranston shared testimony in support of the bill. Peck, whose daughter Aspen battled leukemia, highlighted the financial strain families face during medical crises. “With the weight of the world on our shoulders, we were forced to make life-saving decisions without regard for the cost,” he revealed.
Peck’s emotional testimony underscored the financial toll of medical treatments, revealing that as of December 31, 2023, Aspen’s total cost of care amounted to a staggering $1,056,789.
Various organizations, including the Economic Progress Institute, AARP, the American Cancer Society Cancer Action Network, and the Rhode Island Society of CPAs/Rhode Island Business Forum, voiced their support for the legislation during committee meetings.
Ernie Davis, the director of Northeast State Government Affairs for the Leukemia & Lymphoma Society, referenced a 2022 report from the Consumer Protection Financial Bureau. The report disclosed that one out of every five Americans carries medical debt, totaling $88 billion currently in collections. Davis emphasized the legislation’s importance, stating, “We thank Representative Shallcross-Smith for sponsoring this legislation and urge the members of the Committee to pass the bill to protect patients and their families from additional medical debt burden.”
Parallel legislation, denoted as 2024-S 2711, has been introduced in the Senate by Senator Jacob Bissaillon (D-Dist. 1, Providence), mirroring the efforts to address the pressing issue of medical debt within the state.
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