Press Release
Advocates and Patients Come Together to Applaud the Governor at Bill Signing Ceremony for the Fair Medical Debt Reporting Act (S4907a/A6275a)
Today, at the offices of the Community Service Society of New York (CSS), which runs the state’s independent healthcare ombudsman program, the Governor signed the Fair Medical Debt Reporting Act (S4907a/A6275a) making New York only the second state in the nation to prohibit credit bureaus from reporting on medical debt. And it is the first state to prevent providers from reporting medical debt to credit bureaus.
In a room full of advocates, patients and the bill’s legislative sponsors, Governor Kathy Hochul acknowledged the intent of the legislation to protect consumers from medical debt, stating that: “No one should have to jump through hoops to protect their finances.”
More than 740,000 New Yorkers currently have medical debt on their credit reports. The problem affects low income New Yorkers, and disproportionately impact Black and brown patients, and is especially pervasive in upstate and rural counties of New York with some communities having over 10 percent of their residents reporting medical debt in the collections process.
In 2019, CSS saw a 64 percent increase in calls to its Community Health Advocates (CHA) Helpline from consumers with medical debt problems. Since 2015, nonprofit hospitals and state operated hospitals have collectively sued 75,000 New Yorkers for past due medical debt. In response to this growing problem, CSS and a diverse team of other advocates came together to create the #EndMedicalDebt campaign which has already achieved several legislative victories in past two years, including banning hospitals from placing liens on patients’ homes and garnishing their wages in medical debt cases.
In response to the Governor Hochul’s signing the Fair Medical Debt Reporting Act today, advocates had these statements:
“Governor Hochul has shown tremendous leadership in tackling the state’s medical debt crisis, having enacted four bills into law in the past two years, including legislation banning healthcare providers from placing liens on patients’ homes and garnishing their wages in medical debt collection cases,” said David R. Jones, President and CEO of the Community Service Society of New York. “By signing the Fair Medical Debt Reporting Act today, the governor is making it clear that protecting New Yorkers from predatory medical debt collection practices that can cause financial ruin for consumers continues to be a priority for her Administration.”
“We started this campaign because New Yorkers were reaching out to us afraid and feeling helpless as collections agents for healthcare providers came after them with oppressive collections practices. No one plans to go into medical debt. We are proud that the Governor stands with us on this issue and thank her, Senator Rivera, and Assemblymember Paulin for their brave work to get this bill enacted into law,” said Elisabeth Benjamin, Vice President of Health Initiatives at the Community Service Society of New York.
“This new law will remove obstacles to New Yorkers’ ability to buy homes, get loans or save for retirement. No one should risk putting their financial future in jeopardy by getting the medical care they need, and AARP New York applauds Governor Hochul for signing this bill. Prohibiting medical providers from sending medical debt to credit reporting agencies will especially help older New Yorkers, whose income often decreases while their medical expenses increase – and whose numbers are growing fast. Plus, older Black and Hispanic/Latino families face much higher debt burdens than older white families. We thank bill sponsors Senator Gustavo Rivera and Assembly Member Amy Paulin and their respective houses for passing this legislation earlier this year and making this new law possible,” said Beth Finkel, AARP New York State Director.
"The Labor-Religion Coalition celebrates the passage of the Fair Medical Debt Reporting Act and recognizes Governor Hochul's effort to tackle the ongoing medical debt crisis. Medical debt impacts over 100 million Americans yearly. That medical debt can impact one's credit score is a serious problem in a world where we rely on those scores to access everyday necessities, like renting an apartment or buying a car. We thank our bill sponsors—Senator Rivera and Assemblymember Paulin—for championing this bill, which now ensures that in New York, a health crisis can no longer ruin a credit score. Along with our coalition partners, we will keep fighting to end medical debt and win guaranteed healthcare for all,” said Rev. West McNeill, Executive Director, Labor-Religion Coalition of NYS.
“For far too long, Americans have been financially punished for getting sick and needing healthcare," said Ursula Rozum, Healthcare Lead, Citizen Action of NY. “Passing the Fair Medical Debt Reporting bill to remove medical debt from credit reports is a step in the right direction and we hope state lawmakers will continue taking actions prioritize patients’ rights over health industry profits.”
"We are pleased that Governor Hochul has signed the Fair Medical Debt Reporting Act into a law to provide relief to tens of thousands of New Yorkers whose credit histories are being damaged due to medical debt. Calls to our helpline include older residents with Medicare coverage who are struggling with out-of-pocket costs, some of whom are dealing with debt collectors to settle their bills," said Maria Alvarez, Executive Director, New York Statewide Senior Action Council. "Debt agencies have a job to do, but compounding the impact of medical debt with reports to consumer credit agencies has been an unbearable burden on New Yorkers. Medical care is a necessity and getting care should not affect someone's credit rating."
“Many New Yorkers are drowning in medical debt that can be difficult to pay off, especially for those who may be struggling with a serious health challenge,” said Chuck Bell, advocacy program director for Consumer Reports. “This new law will ensure that New Yorkers won’t see their credit record ruined because of medical bills that bust their budgets. Americans across the country deserve the same protection so they can obtain the health care they need without fear of having their credit record unfairly damaged.”
"Unpaid medical debts are a key driver of negative information on credit reports, causing many New Yorkers to struggle to obtain favorable interest rates, rent apartments, and sometimes apply for jobs," said Kyle Giller, Staff Attorney at the New York Public Interest Research Group (NYPIRG). "By passing the Fair Medical Debt Reporting Act, Governor Hochul, Senator Rivera, and Assemblymember Paulin have taken an important step towards protecting New Yorkers from the adverse effects of medical debt."
“Medical debt is a problem that disproportionately affects Black and Latino communities when accessing the healthcare services they desperately need. Signing the Fair Medical Debt Reporting Act into law will change this by ensuring that patients can access healthcare services that are vital to their wellbeing without having to worry whether medical bills could negatively affect their credit score. On behalf of our more than 600 members and partners, I thank Governor Hochul for signing this bill into law and prioritizing the wellbeing of our community,” said Frankie Miranda, President and CEO of Hispanic Federation.
“We thank Governor Hochul, Senator Rivera, and Assemblymember Paulin for their leadership to protect everyday New Yorkers who struggle with medical debt that they owe and often cannot pay off,” said Mark Hannay, Director of Metro New York Health Care for All. “By banning listings of unpaid medical debt on consumer credit reports, patients will now be able to carry on with the basics of everyday life, and not be adversely impacted by it.”
New York consumers and patients involved in the campaign also made these statements:
“I’ve never owned a home, a car, or been able to obtain a bank loan because when they run my credit report, medical debt is the only negative thing ruining my credit score,” said Bebhinn Francis of Albany. “Removing medical debt from credit reports will open doors for me by allowing me to establish good credit. At 43 years old, I may finally be able to get my first bank loan. Thank you to everyone, patients and lawmakers, and advocates who are fighting to end medical debt. Passing this bill is a step in the right direction and we need to keep fighting so that medical debt doesn’t exist for anyone.”
Donna Ce’Cartel of Syracuse said: “This will have a big impact on people to finally be able to live with dignity. Medical debt on my credit report is holding me back from getting a car loan and meeting my daily necessities. Having a negative credit score creates a stigma and people like me who have had medical issues won’t be treated as if we are just a number, our credit score.”
The #EndMedicalDebt campaign is a group of over 60 non-profit organizations in New York State who have collectively come together around a legislative agenda intended to reduce the burden of medical debt on New York healthcare consumers. These organizations, not all solely focused on healthcare advocacy, include NYPIRG, Hispanic Federation, the Community Service Society of New York, Make the Road New York, Citizen Action, Consumer Reports, the Labor-Religion Coalition of NYS and the New York Statewide Senior Action Council.
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