Poll: Voters want medical debt off of credit reports
A recent national poll reveals strong voter support for laws that would remove medical debt from credit reports and protect individuals from its financial consequences.In Ohio, House Bill 257, known as the Ohio Medical Debt Fairness Act, is a bipartisan effort aimed at stopping medical debt from being reported to credit agencies, limiting interest rates on such debt to 3%, and prohibiting wage garnishment by collection agencies. Despite widespread public backing and minimal fiscal impact as indicated by a government fiscal note, the bill has stalled in the state House Health Committee for months, facing opposition mainly from law firms and debt collectors.Advocates argue this legislation addresses a nonpartisan, common-sense issue that protects families from the harsh impact of medical debt. However, recent federal guidance from the Consumer Finance Protection Bureau asserts that federal law overrides state laws that remove medical debt from credit reporting, posing a barrier to state-level reforms.The CEO of Undue Medical Debt emphasized the urgent need for practical, bipartisan solutions to an escalating medical debt crisis affecting many Americans.
Poll: Voters want medical debt off of credit reports
(The Center Square) – A new national poll shows taxpayer support for an Ohio bill that could ease the burden of medical debt for people throughout the state.
But the federal government and state lawmakers don’t seem to agree.
In Ohio, House Bill 257 – The Ohio Medical Debt Fairness Act – is a bipartisan bill that would, among other things, stop medical debt from being reported to credit agencies.
It has been sitting in the House Health Committee for nearly five months, despite a fiscal note that says it would likely result in minimal impact on state and local governments. The only current objections come from law firms and credit collection agencies.
“This is a commonsense bill that will give Ohioans added safeguards so that they can continue to get well without fear of unexpected, excessive financial burden,” Rep. Jean Schmidt, R-Loveland, said in a release. “This is not a partisan issue; this is a people issue.”
At the same time, a new national poll from the nonprofit Undue Medical Debt shows 76% of the people who responded want their state to pass laws that protect them from medical debt.
Also, support was high for several provisions in Ohio’s proposed medical debt law.
More than 90% of respondents want to limit interest rates on medical debt. HB257 would cap the rate at 3%.
“Medical debt can happen to anyone, and no one should face financial hardship just because they need care,” said Rep. Michele Grim, D-Toledo. “This bipartisan effort is about fairness, dignity, and protecting Ohio families from a broken system that too often punishes people for getting sick.”
The poll also shows that 81% of respondents consider it illegal for collection agencies to garnish wages, and Ohio’s bill would also stop that practice.
“In our polling, we have identified common sense, practical policy solutions that are already successfully protecting families from the financial and emotional turmoil of unpayable healthcare bills,” Allison Sesso, Undue Medical Debt CEO and president, said in a statement. “Medical debt is a common ground issue that voters, almost universally, want their elected leaders to address.”
Just this week, however, the Trump administration issued guidance stating that federal law preempts state laws that eliminate medical debt from credit reporting.
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Already, 15 states do not allow medical debt on credit reports. The U.S. Consumer Protection Agency says its guidance would override those laws.
“I am deeply disappointed by the new rule issued by the Consumer Finance Protection Bureau and frightened about the growing medical debt crisis in this country and its effect on ordinary Americans,” Sesso said.
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