Michigan Senate lawmakers have proposed a pair of bills aimed at curbing how hospitals and debt collectors can recoup unpaid debts, Bridge Michigan reported Jan. 28.
The package of bills would:
- Bar large healthcare facilities and medical debt collectors from taking “extraordinary collection actions,” such as garnishing wages, foreclosing on property or causing an arrest.
- Prohibit late fees or interest exceeding 3% of the amount of medical debt per year.
- Prevent healthcare facilities and debt collectors from charging interest or late fees until at least 90 days after the final bill is issued.
- Prohibit healthcare facilities from deferring, denying or requiring patients to fully pay medical debt before providing urgent services.
- Require healthcare facilities to refund patients within 60 days if they paid more than was owed on medical debt after financial assistance was applied.
The Michigan Health and Hospital Association said it is reviewing the package and remains “engaged with legislators on opportunities to positively impact health care affordability,” according to the report.
Two identical bills have been introduced in the Michigan House, according to the report. None of the bills can be signed into law unless all four pass.
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