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Senate FICP Cmte Jan-Feb: cap interest rates, ban foreclosure, garnishment of wages for medical debt

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Abigail Nobel
(@mhf)
Member Admin
Joined: 4 years ago
Posts: 1145
Topic starter  

Michigan's debt forgiveness program is a drop of the bucket for medical debt in this state. 

These bills tackle one aspect of the problem. Non-health related bills are italicized.

Wednesday, January 28, 2026     12:30 p.m.

AGENDA

SB 583
Sen. Cavanagh
Taxation: administration; electronic notice; allow.

SB 584
Sen. Irwin
Individual income tax: withholding requirements; mandatory withholding requirement by pension administrators; make optional.

SB 701
Sen. Lindsey
Consumer credit: interest rates; maximum interest rate allowed for medical debt; modify.

SB 702
Sen. Anthony
Civil procedure: foreclosure; foreclosure or garnishment of wages for medical debt; prohibit.

And any other business properly before the committee.



   
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Abigail Nobel
(@mhf)
Member Admin
Joined: 4 years ago
Posts: 1145
Topic starter  

I cannot find sources for bill sponsor Sarah Anthony's statement that 700,000 Michigan residents have medical debt.

She may be loosely referencing Gov. Whitmer's press release stating "700,000 Michiganders who have to choose between paying their medical bills or putting food on the table," which is not the same thing.

In any case, that number may be lowballing the problem.

DebtBusters lists Michigan #9 among states for average medical debt.
https://debtbusters.com/which-states-carry-highest-medical-debt-in-america/

Kaplan (citing KFF) puts Michigan at 9% (the high-middle range) by medical debt rates, ie percent of people carrying medical debt.
https://www.kaplancollectionagency.com/news/which-states-are-facing-the-most-medical-debt/

Excellent color-coded data maps and analysis in both reports.



   
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