Three Vulnerable House R's Want To Tackle Medical Debt

(Source: MIRS.news, Published 06/10/2026) Michigan hospitals would be required to offer financial assistance to certain patients and medical debt would largely be barred from credit reports under a three-bill package introduced today by three House Republicans in politically competitive districts.

HB6071, HB6072 and HB6073, sponsored by Reps. Kathy Schmaltz (R-Jackson), Steve Frisbie (R-Battle Creek) and Karl Bohnak (R-Negaunee) would establish statewide standards for hospital financial assistance programs, increase reporting requirements and restrict the reporting of medical debt to consumer credit agencies. The bills were referred to the House Health Policy Committee.

The centerpiece of the package, HB6071, would create a new Hospital Financial Assistance Act requiring hospitals to develop and implement financial assistance programs by Jan. 1, 2027. Hospitals would be required to base eligibility on federal poverty guidelines and provide discounts of up to 100% on a sliding scale for uninsured patients whose annual income is at or below 350% of the federal poverty level.

The legislation also would require hospitals to include patients whose unpaid hospital bills exceed 30% of their annual income during a 12-month period and to consider the financial resources and out-of-pocket expenses of insured patients when determining assistance.

Hospitals would be required to prominently advertise available financial assistance on bills, collection notices and their websites. They also would have to submit annual reports to the Department of Health and Human Services (DHHS) detailing the number of applications received, benefits provided and the amount of debt forgiven. DHHS would be required to publish the reports online.

A hospital violating the act could face civil fines of up to $10,000. Revenue from those penalties would be deposited into a newly-created Medical Debt Relief Fund, which would be used for programs designed to relieve medical debt in Michigan.

HB6072 would apply the requirements of the new financial assistance law to county-owned public hospitals governed by hospital trustees.

HB6073, the Medical Debt Act, would prohibit consumer reporting agencies from including adverse medical debt information in most consumer credit reports. The bill also would prohibit medical creditors and medical debt collectors from reporting medical debt to credit reporting agencies. An exception would remain for large credit transactions exceeding the national conforming loan limit for a single-family home.

The bill would also require collection agencies to notify consumers that Michigan law generally prohibits medical debt from appearing on credit reports and would allow individuals to sue for damages, injunctive relief and attorney fees for violations of the act.

In a statement, the sponsors said the legislation is intended to provide more consistent access to hospital financial assistance while preventing medical debt from creating long-term financial consequences for Michigan residents.