(LANSING) - A bipartisan plan led in part by State Senator Jonathan Lindsey (R, Coldwater) to reduce medical debt across Michigan has passed the state Senate.
The legislation, co-sponsored by Lindsey and Senator Sarah Anthony (D, Lansing) cleared the chamber Wednesday on a 35-0 vote.
The package includes the Medical Debt Protection Act and the Hospital Financial Assistance Act, both aimed at easing financial pressure on patients.
Under the bills, interest rates and late fees on medical debt would be capped at 3 percent per year. The proposal would also ban aggressive collection practices such as wage garnishment, home foreclosure, and arrests tied to unpaid medical bills.
Another provision would prevent medical debt from appearing on consumer credit reports.
Hospitals would also be required to create standard financial assistance programs offering discounts to uninsured patients.
Supporters say the changes could help roughly 700,000 Michigan residents currently struggling with medical debt.
The legislation now moves to the Michigan House of Representatives for consideration.