Bills would safeguard 700,000 Michiganders weighed down by medical expenses through new guidelines for hospitals, debt collection practices
LANSING, Mich. (March 11, 2026) — Medical debt is the number one cause of bankruptcy for Michiganders and people across the country, an alarming statistic that underscores the need for swift, strategic action. To tackle this growing issue head-on and provide support for those struggling with medical expenses, today, the Michigan Senate passed a suite of comprehensive, bipartisan legislation championed by Sens. Sarah Anthony (D-Lansing) and Jonathan Lindsey (R-Coldwater) that would establish clear guidelines for hospitals to offer financial assistance programs while also regulating how and when debt can be collected.
“When medical debt can follow someone around for the rest of their life — hurting their ability to buy a home, forcing them to forgo essential expenses like food and rent, and keeping them from getting back on their feet — we know the system is broken,” said Sen. Anthony. “By making sure hospitals clearly offer financial assistance and by putting guardrails around extreme collection practices, we can give families a real chance to get back on their feet. I’m proud to see this legislation move forward and grateful for the bipartisan, bicameral work that made it possible. No one should be punished for getting the care they need and deserve.”
In the U.S., almost one-third of working-age adults are in debt due to medical or dental bills, while nearly 40% of those who have experienced medical debt say they have to cut back on essential costs like food, rent, and heat. This legislation would align Michigan with states that have the strongest medical debt protections in the country, offering a real chance to secure meaningful support for families across the state burdened by medical bills.
“The Senate passing these bills marks a significant first step in delivering real relief for our state’s medical debt crisis,” said Sen. Lindsey. “Right now, too many Michiganders are burdened by medical debt with limited opportunities to escape it. Senator Anthony has been a leader on this issue, and our partnership on these legislative packages will ensure transparency in charity care and strengthen our state’s laws on medical debt.”
Introduced last summer, Senate Bills 449–451 seek to standardize the financial assistance programs nonprofit hospitals are required to provide, while establishing clear, consistent eligibility metrics to ensure support is available to those who need it most. This package would also prevent medical debt from being included in consumer credit reports, protecting residents from long-term financial harm due to health-related costs.
And, to provide meaningful protection from aggressive, harmful medical debt collection practices, Senate Bills 701–702, also introduced last year, would:
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Cap interest and late fees on medical debt at 3% annually, beginning after a 90-day grace period.
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Prohibit liens and home foreclosures resulting from medical debt.
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Prohibit wage garnishment for patients who qualify for financial assistance.
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Prohibit deferring, denying, and requiring payment before providing emergency or urgent services due to outstanding medical debt.
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Update the Consumer Protection Act to reflect the above changes.
This legislative work builds on Sen. Anthony’s successful push to include $4.5 million in the 2024 state budget for medical debt relief. Through partnerships and local matching funds, this investment is projected to erase an estimated $450 million in medical debt for more than 180,000 Michiganders, with funds starting to be released last year.
To learn more about Sen. Anthony’s efforts to protect and deliver relief for those who are saddled by the growing issue of medical debt, visit SenatorAnthony.com/medical-debt-cosponsor. Michiganders are also invited to sign on as a citizen co-sponsor or share their personal experiences with medical debt to help build the momentum this legislation needs to continue moving forward.
This legislation will now advance to the House for further consideration.
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