June 20th, 2023. The New York State Assembly passed the Fair Medical Debt Reporting Act (A.6275A) by a vote of 107 to 37. The State Senate passed the bill (S.4907A) last month by a vote of 48 to 10. It is now up to the Governor to sign this important piece of legislation. Once signed into law, medical debt will no longer be able to be reported to credit reporting agencies or show up on any New Yorker’s consumer credit report.
The #EndMedicalDebt campaign, initiated by the Community Service Society of New York (CSS) along with more than 50 non-profit organizations from around New York State, worked with State Senator Gustavo Rivera and State Assemblymember Amy Paulin, the bill’s prime sponsors, to get this legislation passed during this year’s legislative session. The campaign has been working to alleviate the problem of medical debt since 2020, including the enactment of two pieces of legislation in 2023 that banned the imposition of facility fees and the practice of liens and wage garnishments being placed on consumers who are behind on paying back their medical debt.
Medical debt is a serious problem afflicting 100 million Americans (41 percent of the population). Moreover, there are racial disparities associated with who is burdened by medical debt, with 28 percent of Blacks and 22 percent of Hispanic/Latinos carrying medical debt versus 17 percent of whites. A New York poll found that 41 percent of New Yorkers have either appealed a medical bill or paid one they didn’t think they owed for fear of being sued or placed into collections. Another 38 percent avoided care or sacrificed other necessities because of the cost of health care.
Members of the #EndMedicalDebt campaign celebrated today’s Assembly floor vote:
“We want to thank Senator Rivera and Assemblymember Paulin for their leadership on this legislation, as well as prioritizing legislative reforms that protect consumers from predatory medical debt collection practices,” said Elisabeth Benjamin, CSS Vice President of Health Initiatives. “With the help and dedication of a truly diverse coalition of 50 organizations, we have worked closely with the New York’s elected leaders to undue the pernicious damage of medical debt—we thank them for their dedication to grave concern affecting so many New Yorkers.”
“NYPIRG applauds the Assembly approval of legislation to keep medical debts off of consumer credit reports. Medical bills are unlike all other consumer purchases and are notoriously inaccurate. This legislation is important, and we urge Gov Hochul to sign it,” said Kyle Giller, Staff Attorney at NYPIRG.
"We are thrilled that A.6275A passed the Assembly. This bill will help our clients enormously in protecting their credit reports and will encourage them to use medical services without fear,” said Sudha Acharya, Executive Director at South Asian Council for Social Services.
“Medical debt is a serious problem that creates a crushing burden for many New Yorkers and unfairly undermines their financial security,” said Chuck Bell, Advocacy Programs Director for Consumer Reports. “A bad credit record can make it much more expensive or impossible for a patient to rent a home, buy a car or home, or secure a loan. This bill protects the right of New Yorkers to obtain the health care services they need without fear of having their credit records unfairly ruined.”
"Medical debt is the consequence of an immoral system that treats healthcare as a commodity rather than a right. Unaffordable medical bills should never be held against a person seeking a job, a home, or a loan - yet that's what happens when medical debt goes on a person's credit report,” said Rev. E. West McNeill, Executive Director, Labor-Religion of New York State. “New York has taken an important step to end that practice today as the legislature sends the Fair Medical Debt Reporting Act to the governor's desk. We call on her to sign it immediately and ease the burden of medical debt on New Yorkers. Meanwhile we will continue to fight alongside patients, moral leaders, and advocates across New York to win truly accessible, affordable, high-quality healthcare for all."
“Passing the Fair Medical Debt Reporting bill is going to make a huge difference in the lives of patients, freeing us from the long term financial punishment that comes from seeking healthcare in the current system. Healthcare is a human right,” said Ursula Rozum, Healthcare organizer for Citizen Action New York. “We applaud Health chairs Paulin and Rivera and Speaker Heastie and Leader Stewart Cousins for their leadership and look forward to working together to win a future where New Yorkers can access all the care they need without worrying about the cost.”