Rep. Schmaltz advances plan to protect Michigan families from medical debt

State Rep. Kathy Schmaltz today led the Michigan House in approving a comprehensive plan to help families struggling under the growing burden of medical debt, securing overwhelming bipartisan support for the legislation.

Medical debt remains one of the most significant financial challenges facing Michigan residents, with approximately 700,000 people across the state currently struggling to pay off medical bills. As of 2025, more than 3% of residents had medical debt in collections, with a median debt of $1,094.

“Too many families are doing everything right, but one unexpected illness can still throw their finances into chaos,” said Schmaltz, R-Jackson. “This plan is about making sure people can get the care they need without worrying that it will follow them financially for years to come.”

House Bills 6071-6073 establish clear, consistent standards for hospital financial assistance, strengthen oversight and accountability, and protect patients from long-term financial harm tied to medical bills.

The plan requires hospitals to maintain meaningful financial assistance programs based on income and need, ensuring help is available to patients who cannot afford care. It also improves transparency by requiring hospitals to clearly communicate assistance options before bills are sent to collections.

In addition, the legislation includes strong consumer protections to prevent medical debt from impacting patients’ credit histories, helping protect their ability to buy a home, secure a loan or support their families moving forward.

“Getting sick or injured is hard enough,” Schmaltz said. “No one should have to navigate a confusing system or worry about long-term financial damage while they’re trying to recover. This is about fairness, accountability and putting patients first.”

The plan also increases transparency and accountability by requiring hospitals to report data on their financial assistance programs to the state, ensuring the system is working as intended and helping those who need it most.

Schmaltz also for House Bills 5254 and 5255, which would cap interest rates on medical debt, prohibit aggressive collection practices such as wage garnishment and home foreclosures tied to medical bills, and establish additional consumer protections. These complementary measures also passed the House today with bipartisan support.

All of the measures now advance to the Senate for further consideration.