The proposed legislation would also wipe medical debt from credit reports and limit the accrual of future medical debt, according to a May 8 news release from Mr. Sanders’ office.
The other sponsors of the bill are Oregon Sen. Jeff Merkley, California Rep. Ro Khanna and Michigan Rep. Rashida Tlaib.
If enacted, the bill would:
- Create a grant program within HHS to cancel medical debt, prioritizing low-resource providers and vulnerable populations.
- Make it illegal to collect medical debt incurred prior to the bill’s enactment and create a private right of action for patients.
- Prevent credit report agencies from reporting information related to debt that arose from medical expenses.
- Update billing and debt collection requirements in the Public Health Services Act to limit the potential for future debt to be incurred.
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