Reps. Grim, Schmidt Introduce The Ohio Medical Debt Fairness Act
COLUMBUS – State Reps. Michele Grim (D-Toledo) and Jean Schmidt (R-Loveland) introduced The Ohio Medical Debt Fairness Act. This legislation will regulate medical debt standards, limiting the predatory practices that drive Ohioans into further debt.
“Medical debt can happen to anyone, and no one should face financial hardship just because they need care. This bipartisan effort is about fairness, dignity, and protecting Ohio families from a broken system that too often punishes people for getting sick,” said Rep. Grim.
The Ohio Medical Debt Fairness Act will:
- Lower the maximum interest rate for medical debt to 3% per year, capping predatory charges;
- Prohibit hospitals, medical providers, and third-party collectors from reporting medical debt to credit agencies, so that necessary care does not permanently damage a person’s financial future; and
- Prohibit wage garnishment for medical debt collections, keeping families from spiraling into deeper hardship.
While serving on Toledo City Council, Rep. Grim led an effort to eliminate medical debt – an initiative that has become a model for communities across Ohio and across the nation. With a $1.6M joint commitment, Toledo and Lucas County partnered with the nonprofit Undue Medical Debt to abolish debt for people in the communities for pennies on the dollar. So far, more than 43K Lucas County residents have received relief. The initial investment also leveraged private donations to deliver additional support for patients of local hospital systems. Altogether, more than $230M in medical debt has been eliminated for over 112K people in our region.
The Ohio Medical Debt Fairness Act awaits assignment to a House Committee.
EDITOR’S NOTE: Pictures of Rep. Grim from Tuesday’s press conference introducing the legislation are attached to this press release. Courtesy: Ohio House Democrats.