Patient Debt Relief Act
Sponsored By: Representative Vasquez, Gabe [D-NM-2]
Introduced
Summary
National standards for hospital financial assistance and limits on medical debt collection. This bill makes hospitals that take Medicare follow clear charity-care rules, pauses collections while eligibility is decided, and restricts liens, wage garnishment, and aggressive debt sales.
Show full summary
- Patients and families: Patients get published eligibility rules and a decision no later than 30 days before payment is due. They can appeal and must be offered repayment plans with minimum payments at or below 4 percent of gross monthly income.
- Hospitals: Hospitals must adopt and publish financial assistance policies, screen applicants, include eligibility notices with bills, and undergo annual audits beginning Jan 1, 2029. Noncompliance can trigger civil monetary penalties up to $1.0 million per instance.
- Debt collectors and enforcement: Sale or assignment of medical debt is generally limited until one year after the debt is due unless repayment and adherence conditions are met. An online portal for reporting noncompliance must be ready by Jan 1, 2028 and enforcement aligns with the Fair Debt Collection Practices Act.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Limits on hospital medical debt collections
This bill would make hospital charity care and debt-collection rules a condition of Medicare participation starting January 1, 2028. Hospitals would have to post financial-assistance rules, screen patients, include eligibility and collection-limit notices with bills, and decide charity-care applications at least 30 days before a bill is due. Hospitals would not be allowed to place liens on a person's primary home or garnish wages to collect hospital bills. If a hospital has the needed income information and finds household income was at or below 250 percent of the poverty line, it would not charge interest or sell that debt. Repayment plans would cap minimum monthly payments at 4 percent of gross monthly income. A hospital could sell or assign debt only after more than one year, and only if you miss four consecutive payments or decline the plan, and any buyer agreed to the no-liens and no-garnishment rules.
Grants to buy and wipe medical debt
This bill would create a Medical Debt Relief Grant Program within one year of enactment. The Secretary would make a grant to not more than one eligible nonprofit to identify, acquire, and discharge qualifying medical debt. You would qualify if your medical debt was at least 5 percent of your modified adjusted gross income for the most recent year, or if household income was at or below 400 percent of the poverty line for your family size. The bill would authorize $100,000,000 for fiscal year 2027, available until spent. The nonprofit would have to notify people within 60 days after buying and discharging a debt and report to the Secretary at least quarterly.
Hospital audits and fines for collections
This bill would require the Secretary to set up a secure online portal by January 1, 2028 for people to report hospitals or debt collectors that break the new rules. The Secretary would audit a random sample of hospitals every year starting January 1, 2029. The Secretary could impose civil monetary penalties up to $1,000,000 per instance, but only after notifying a hospital within 90 days and giving it 45 days to show meaningful action toward compliance.
Sponsors & CoSponsors
Sponsor
Vasquez, Gabe [D-NM-2]
NM • D
Cosponsors
Stansbury
NM • D
Sponsored 2/10/2026
Rep. Ruiz, Raul [D-CA-25]
CA • D
Sponsored 2/10/2026
Rep. Castor, Kathy [D-FL-14]
FL • D
Sponsored 2/10/2026
Rep. Thanedar, Shri [D-MI-13]
MI • D
Sponsored 2/10/2026
Rep. Clarke, Yvette D. [D-NY-9]
NY • D
Sponsored 2/10/2026
Schrier
WA • D
Sponsored 2/10/2026
Rep. Garcia, Robert [D-CA-42]
CA • D
Sponsored 2/10/2026
Barragan
CA • D
Sponsored 2/10/2026
Rep. Landsman, Greg [D-OH-1]
OH • D
Sponsored 2/10/2026
Rep. Frost, Maxwell [D-FL-10]
FL • D
Sponsored 2/10/2026
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 2/10/2026
Craig
MN • D
Sponsored 2/10/2026
Rep. García, Jesús G. "Chuy" [D-IL-4]
IL • D
Sponsored 2/10/2026
Simon
CA • D
Sponsored 2/10/2026
Rep. Goldman, Daniel S. [D-NY-10]
NY • D
Sponsored 2/10/2026
Rep. Horsford, Steven [D-NV-4]
NV • D
Sponsored 2/10/2026
DelBene
WA • D
Sponsored 2/10/2026
Cohen
TN • D
Sponsored 2/23/2026
Roll Call Votes
No roll call votes available for this bill.
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