Yahoo Finance Bernie Sanders announces bill to ‘cancel all medical debt’ — here’s his plan
Bernie Sanders just introduced legislation to wipe a stunning $220 billion in medical debt held by Americans across the country.
The bill, introduced with Oregon Sen. Jeff Merkley, California Rep. Ro Khanna and Michigan Rep. Rashida Tlaib — all Democrats — proposes canceling all existing medical debt, removing it from credit reports and dramatically restricting the accrual of any future medical debt.
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“This is the United States of America, the richest country in the history of the world. People in our country should not be going bankrupt because they got cancer and could not afford to pay their medical bills,” Sanders, the independent senator from Vermont, said in the press release.
“The time has come to cancel all medical debt and guarantee health care to all as a human right, not a privilege.”
What Bernie’s bill proposes
If enacted, Sanders’ Medical Debt Cancellation Act would create a federal grant program to cancel all existing medical debt, “prioritizing low-resource providers and vulnerable populations.”
The bill further proposes amending the Fair Debt Collection Practices Act to prevent creditors from collecting past medical bills and the Consumer Credit Reporting Act to block credit agencies from reporting information related to unpaid medical bills (and hurting patients’ credit histories).
Sanders wants to update billing and debt collection requirements for medical providers as well, to reduce the likelihood of any future debt to be incurred.
“No one in America should face financial ruin because of the outrageous cost of an unexpected medical emergency or a hospital stay,” he says.
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Millions of Americans struggling with medical debt
Around 14 million Americans (6% of adults) owe over $1,000 in medical debt and about 3 million (1% of adults) owe medical debt of more than $10,000, according to the Peterson-KFF Health Tracker.
In the meanwhile, some Americans (including those with insurance) are postponing or skipping treatment altogether due to the costs, reports KFF.
In an interview with the Guardian, Rep. Khanna (D-CA) reveals that he spoke to many Americans grappling with massive debt after facing medical emergencies, resigned to letting their debt ruin their credit.
“People in America don’t think you should go into debt because you go to see a doctor or go to the emergency room,” Khanna said. “It’s kind of human decency.”
Some Americans have mixed feelings
While Sanders’ bill is likely to face opposition from a Republican-controlled House, a 2022 YouGov survey shows 66% of Americans — including 56% of Republicans and 85% of Democrats — support some relief to those with medical debt.
Still, many Americans have responded with skepticism to the proposed legislation and whether relief will come out of taxpayers' pockets.
“Medical debt can become uncontrollable because you can't help what happens to you at any point in your life, but this screams of buying voters,” writes former Ethereum adviser Steven Nerayoff on X.
YouTuber Wendy O asks, “is bernie going to pick up the tab?”
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
