States Could Take the Lead on Addressing the Medical Debt Crisis

By Consumers for Quality Care, on December 17, 2024

With health care advocates uncertain about what the Republican-controlled White House and Congress will do to address the nation’s medical debt problem, states may find themselves leading the charge on this issue, according to KFF Health News. 

According to Eva Stahl of Undue Medical Debt, a nonprofit that purchases large quantities of debt from hospitals for pennies on the dollar then retires this debt for consumers, “states are going to be the epicenter of policy change to mitigate the harms of medical debt.”

State legislatures can enact measures that prohibit debt from being reported on credit reports, restrict the use of medical credit cards which often come with hidden fees that put consumers further into medical debt, and instruct hospitals to increase charity care for those in need.

However, the federal government can undermine all these efforts if federal funding is cut for programs like Medicaid and subsidies to purchase health insurance through the Affordable Care Act (ACA) marketplaces.

With around 100 million Americans carrying medical debt, state elected leaders can’t afford to sit on the sidelines. CQC applauds states that have spearheaded initiatives to alleviate medical debt for their constituents but urges the nation’s elected leaders to address the root causes of the medical debt crisis.