Ohio’s Proposed Medical Debt Fairness Act Would Address Mounting Medical Debt Among Many Ohioans

Ohio’s proposed Medical Debt Fairness Act would address the mounting issue of medical debt across the state.More than a third of Ohioans struggle to pay their medical bills, according to Undue Medical Debt, a nonprofit that buys medical debt and erases it for financially vulnerable families.The bipartisan proposal under House Bill 257 would limit medical debt interest to 3% per year, ban wage garnishment for medical debt collections and prohibit hospitals, medical providers and debt collectors from reporting medical debt to credit agencies.”We want to make sure that we give people a fighting chance,” said Michele Grim, the Democratic representative from Toledo who introduced the bill. “We give people a leg up instead of keeping them down, and you know, I think these key things will help…millions of Ohioans.”Health care costs are the leading cause of bankruptcy for American families, according to the American Bankruptcy Institute. The National Library of Medicine estimates 20 million Americans hold $220 billion in unpaid medical bills.”It’s not like you bought a car or you racked up credit card debt and now you can’t pay it,” Grim said. “This is something that’s life-changing for a lot of people.”Grim says that when medical debt goes on a credit report, it can hinder people from getting a job or a mortgage, which can keep people from moving forward in their lives after recovering from an illness or injury.The legislative proposal continues to be discussed in the Ohio House Health Committee. It’s facing opposition from the debt collection industry, which has raised concerns about the message it sends on repaying medical debt.”House Bill 257 disincentivizes consumers to repay their debt by removing the options creditors currently have to ensure repayment,” wrote Lora Miller, the executive director of the Ohio Receivables Management Association. “By prohibiting wage garnishment and credit reporting, the legislature would be sending a message that repaying medical debts is unnecessary.”Cities across Ohio have taken measures to tackle the issue in recent years. Earlier this month, the City of Cincinnati announced the results of a $1.45 million investment in partnership with Undue Medical Debt to erase medical debt for more than 107,000 Cincinnatians. The city’s investment led to $219 million in debt being relieved.

https://www.wlwt.com/article/ohio-medical-debt-fairness-act-proposal/69014376