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

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.

Medical debt provisions in SB 449-451 passed the senate, as summarized by MPRN.

https://www.michiganpublic.org/health/2026-03-12/michigan-senate-passes-medical-debt-bills

Michigan Senate passes medical debt bills

Colin Jackson    |    March 12, 2026

The Michigan Senate passed five bills to help with medical debt Wednesday.

The package would require hospitals to create financial assistance programs to help some low-income patients. Those would be available to people whose unpaid bills in one year total more than 30% of their annual income.

Another bill would stop medical debt from affecting someone’s credit score. Right now, the major credit bureaus still consider debts $500 and larger that are more than a year overdue.

State Senator Sarah Anthony (D-Lansing) co-sponsors the package. She said it’s an issue that can affect everyone, even if they have health insurance.

“For far too many, medical debt isn’t just a one-time bill. It can damage credit, threaten housing, and wages, and turn a health crisis into a long-term financial stress,” she said in a floor speech Wednesday.

The bills received pushback during the committee process from the credit reporting industry.

In a letter to the Senate Health Policy Committee, Consumer Data Industry Association director Zachary Taylor said the bills could conflict with federal law.

“[M]aintaining alignment between state consumer reporting laws and federal consumer reporting laws is more critical than ever. State legislation that attempts to regulate credit reporting can unleash many unintended consequences,” Taylor wrote.

Beyond one’s credit score, the bills would also limit medical debt collection practices. Home foreclosures… liens… or wage garnishment related to medical debt would largely face bans.

Meanwhile, larger medical facilities would no longer be allowed to charge late fees on debt within 90 days of a due date, or charge more than 3% interest on outstanding debt in a single year.

The bills were among the policies Governor Gretchen Whitmer called for in her State of the State speech last month. They passed the Senate with bipartisan support.

Senator Jonathan Lindsey (R-Coldwater) co-sponsored the bills. He said the job isn’t done without also passing hospital price transparency bills.

"We have an opportunity to not only address medical costs when they become a crisis for people, when they face medical debt. But to also help them in getting care in ways that are the most economically feasible for those people,” Lindsey said.

The legislation now moves to the House of Representatives, where Speaker Matt Hall (R-Richland Twp) is also calling for hospital transparency bills to make it across the finish line.

When asked if he’d support the Senate bills during a press conference Wednesday, he talked at length about other medical cost measures he wanted to see. Those included the creation of a hospital oversight board and a deeper look at the growth of Michigan’s hospital systems.

“I like this issue,” Hall said regarding the medical debt bills, before adding, “It’s incomplete and we want to see these other things go into place too.”

While talking to reporters, Anthony didn’t rule out the possibility of more legislation down the line. But she said the Senate bills made sense as a starting point.

“What people like to see is when we have concrete proposals that meet the needs of the people and I think this bill package before us does that,” she said.

In a written statement, the Michigan Health and Hospital Association didn’t take an expressed position on the bills, saying it’s willing to work with lawmakers on new policies.

“Ensuring patients have access to high-quality hospital care in their communities is deeply important to Michigan hospitals, and we look forward to continued collaboration with all stakeholders to find solutions that preserve vital services close to home,” association spokesperson Elise Gonzales said.