(The Center Square) – Law firms, collections agencies and disease support groups are on opposite sides of an Ohio bipartisan bill that lawmakers will address growing consumer medical debt.
House Bill 257, which had its fourth hearing Wednesday in front of the House Health Committee, would cap annual interest rates on medical debt, stop wage collections and stop medical providers or collection agencies from reporting nonpayment of debt to consumer reporting agencies.
All that, according to cosponsor Rep. Michele Grim, D-Toledo, would help families who she believes are punished for getting sick.
“Medical debt can happen to anyone, and no one should face financial hardship just because they need care,” Grim said. “This bipartisan effort is about fairness, dignity, and protecting Ohio families from a broken system that too often punishes people for getting sick.”
Grim served on the Toledo City Council, which established a $1.6 million commitment between Toledo, Lucas County, and Undue Medical Debt to reduce medical debt.
The government investment led to private donations, which eliminated $230 million in medical debt for 112,000 people in the region.
Rep. Jean Schmidt, R-Loveland, called the legislation a commonsense solution that provides protections.
“This is a commonsense bill that will give Ohioans added safeguards so that they can continue to get well without fear of unexpected, excessive financial burden,” Schmidt said. “This is not a partisan issue; this is a people issue.”
Opponents say the bill, which has been in the House since May, does more to harm the current health care system than help it.
“The guardrails meant to protect the health and safety of Americans are failing,” Rachel Mason, an attorney with Mason, Schilling & Mason Co., in Mason, Ohio, testified recently. “However, the way to fix this broken system is not to reduce the ability of medical facilities and physician groups to recoup money needed to provide medical services. For this reason, Ohio House Bill 257 fails to protect Ohioans and instead only erodes the current medical system.”
