Press Release
State Lawmakers Hail New Report Showing Amount and Disparities of Medical Debt in New York State
State Lawmakers Hail New Report Showing Amount and Disparities of Medical Debt in New York State
Legislators Urge Gov. Hochul to Sign their Fair Medical Debt Reporting Act into Law
State Senator Gustavo Rivera and Assemblywoman Amy Paulin, Health Committee Chairs and lead sponsors of the Fair Medical Debt Reporting Act, which passed the legislature last month to prohibit all medical debt from being included in credit reports, are extolling a new report showing the unequal burden of medical debt across communities in New York State. The report created by the Urban Institute and funded by New York Health Foundation, reinforces that policies which protect New Yorkers from crippling medical debt – along with expanding health coverage and improving access to hospital financial assistance – are key to ensuring a more affordable and equitable healthcare system.
The report comes on the heels of passage last month of the Fair Medical Debt Reporting Act (S.4907A/A.6275A). Under this bill, 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.
“We applaud the New York Health Foundation for commissioning this Urban Institute analysis, which reveals the disparities in medical debt in our state,” said State Senator Gustavo Rivera, Chair of the Senate Health Committee and prime sponsor of S.4907A. “It is no surprise that the report found communities of color and low-income communities are most impacted by medical debt on credit reports. I hope this report, which offers data on the impact of medical debt across the state, will persuade Governor Hochul to sign the Fair Medical Debt Reporting Act into law and, in doing so, ease the burden of medical debt on so many New Yorkers.”
“Medical debt is a serious problem in New York and across our nation,” said State Assembly Member Amy Paulin, Chair of the Assembly Health Committee and prime sponsor of A.6275A. “Hundreds of thousands of New Yorkers have medical debt on their credit report, jeopardizing their lifetime financial well-being, including the ability to secure loans, housing and employment. Our legislation would keep medical debt, which is less predictive than non-medical debt of a consumer’s credit worthiness, off of consumer credit reports. I urge Governor Hochul to sign this important bill into law and help ensure that New Yorkers receive the healthcare they need without the fear of facing financial ruin.”
The Urban Institute report, which was released yesterday, found that about 740,000 adults (approximately six percent of the population) had medical debt in collections on their credit reports in February 2022. Some of the key findings from the report include:
- The shares of New York consumers with medical debt were the highest (more than 10 percent) in four areas of the state -- Mohawk Valley, the Southern Tier, Central New York, and the North Country -- compared to three percent on Long Island and four percent in New York City.
- Communities of color and low-income communities carried a disproportionate share of medical debt. For example, in the Capital District, communities of color had a median debt ($899) two times higher than the median for predominantly white communities ($448).
- High debt communities in the state tended to be more rural, with higher rates of disability and lower rates of educational attainment compared with communities with the lowest percentages of medical debt.
The #EndMedicalDebt campaign, coordinated 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 Rivera and State Assembly Member Paulin to get A.6275A/S.4907A passed during this year’s Legislative Session. The campaign has been working to alleviate the problem of medical debt since 2020 and helped two pieces of legislation become law in 2021 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.
For more information on the #EndMedical Debt campaign go to: www.cssny.org