No one expects to need to go to the emergency room or get a life-changing diagnosis, both of which usually come with bills of varying amounts depending on the patient’s insurance situation.
U.S. Representative Gabe Vasquez introduced the Patient Relief Act to help those who may not be able to pay those medical bills.
The Democrat, who represents New Mexico’s 2nd Congressional District, introduced the bill Tuesday. The bill seeks to provide relief and protections to Americans with medical debt by setting up a grant program that allows non-profit organizations to buy debt from hospitals while codifying patient protections from debt collectors.
“Suffering from a medical emergency should not mean putting your home or family’s future at risk – but too often, New Mexicans are faced with significant medical debt that threatens their financial stability. My bill will protect patients and ensure that debt collectors cannot foreclosure on homes simply because of medical debt,” Vasquez said in a press release Tuesday. The Patient Debt Relief Act will provide relief to those suffering from medical debt while ensuring long-term protection for patients all over the country.”
Medical debt affects more than 20 million Americans which affects Black and Hispanic populations disproportionately, the press release said.
“The Patient Debt Relief Act prevents creditors from foreclosing on a home or seizing wages due to unpaid medical bills. By cracking down on predatory debt collection practices and allowing non-profits to provide debt relief, Vasquez is ensuring that people are able to focus on their recovery, instead of their debt,” the press release states.
According to Vasquez’s office, the Patient Relief Act seeks to require hospitals to establish minimum standards for federal financial eligibility programs and require patients to appeal eligibility decision concerning those programs, prohibit medical bill interest charges for people who are living at or below 250 percent of the poverty level and prohibit hospitals from sending those people’s debt to collection agencies and authorize a grant program through the Department of Health and Human Services for outside organizations to identify eligible individuals with medical debt and work with hospitals to forgive the debt. Only one group may be appointed to do this each year.
“We know that thousands of patients across New Mexico, and more across the country, are being sued for unpaid medical bills — having their wages garnished, liens placed on their homes and their credit ruined — all while hospitals benefit from public funds,” Healthcare Attorney at the New Mexico Center on Law and Poverty Arika E. Sánchez said in the press release. “We commend and support Rep. Vasquez’s effort to prohibit hospitals from sending low-income patients to collections, placing liens or foreclosing on their homes to recover unpaid medical bills and garnishing much-needed wages.”
Co-sponsors of the legislation include Congressional Hispanic Caucus Chair Nanette Barragán, D-California, Congressional Black Caucus Chair Steven Horsford, D-Nevada, and Representatives Raul Ruiz, M.D., D-California, Kim Schrier, M.D., D-Washington, Shri Thanedar, D-Michigan, Melanie Stansbury, D-New Mexico, and Sheila Cherfilus-McCormick, D-Florida.