Sen. Lesser Applauds House Passage of Bill to Protect Those With Medical Debt

Today Chair of the Human Services Committee, State Senator Matt Lesser applauds House passage of Senate Bill 395, a proposal to protect Connecticut residents with medical debt.

The proposal prohibits Connecticut health care providers and hospitals from reporting medical debt to credit rating agencies for use in a credit report and voids any medical debt that is reported to credit rating agencies. The bill passed House 106-44 today after passing the Senate 27-9 in April. The bill now heads to the Governor’s desk

“Medical debt is a symptom of an utterly broken health care system. By including medical debt in credit reports, we allow creditors to make decisions with immense impact, based on one of the worst moments of someone’s life that is not reflective of their financial responsibility or habits,” said Senate President Martin Looney. “While I am hopeful that reform is imminent, I am proud of the work of the Senate Democrats to protect low income working people from this predatory system.”

“Medical debt is not the result of poor financial decisions or consumer spending – it is the result of a health care system that prioritizes profits over people,” said State Sen. Matt Lesser. “Medical debt is typically a one time incurrence due to necessity, and no family faced with those circumstances should face further financial pressure while seeking to rent an apartment or buy a car. Massive healthcare reform is needed, but I am proud that we have taken a step to insulate Connecticut residents from financial ruin for circumstances outside of their control. I am encouraged by the bipartisan vote in both chambers, as well as the support from the Connecticut Hospital Association and a wide array of consumer advocates. I am also grateful to the federal Consumer Financial Protection Bureau for its thoughtful engagement with this important state legislation. The CFPB is an outstanding institution that protects the interest of consumers across the country against financial abuse and exploitation. Their support of this Connecticut legislation is a great example of the Biden Administration supporting commonsense pro-consumer reforms, putting regular people ahead of special interests. And a big thank you to my Co-Chair Representative Jillian Gilchrest for leading this bill through the House today.”

A number of consumer advocates, the Connecticut Hospital Association and the federal Consumer Financial Protection Bureau submitted testimony in favor of this legislation.