Washington state senators have introduced legislation that would eliminate interest charges on new and unpaid medical debt, the Seattle Times reported Jan. 21.
The state passed legislation in 2019 to cap medical debt interest at 9%, according to the report. Other states, such as New Jersey, North Dakota and Virginia have recently capped their rates between 1% and 3%. Maine and Delaware bar any interest on medical debt.
Washington Sen. Emily Alvarado, one of the bill’s sponsors, said that addressing interest on medical debt is a key way to help families address the cost of living and increase access to healthcare, according to the report.
The Washington Hospital Association opposes the legislation, according to the report. Lisa Thatcher, the organization’s senior director of government affairs, said that small rural hospitals are financially vulnerable and that interest on the debt is important. She said medical debt functions as a loan for those who can’t afford to pay for services at the time they are rendered. There could be unintended consequences if the interest is taken away.
“You have to realize that there is debt out there, and when money is not paid, there is an impact to those providers that have provided those services,” Ms. Thatcher said.
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