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Rep. Ro Khanna introduces bill to cancel all medical debt
In the United States, more than 100 million individuals are burdened by various forms of healthcare debt.
Congressman Ro Khanna. / Ro Khanna website.
Congressman Ro Khanna, alongside Senator Bernie Sanders, Jeff Merkley, and Rashida Tlaib, introduced a bill aimed at erasing the $220 billion medical debt burden carried by millions of Americans. The proposed legislation seeks to eliminate this debt entirely, remove it from credit reports, and implement measures to significantly reduce the accumulation of future medical debt.
In the United States, more than 100 million individuals are burdened by various forms of healthcare debt, with 20 million people facing unpaid medical bills exceeding $250. This translates to nearly four in ten American adults grappling with healthcare-related debt, and one in every 12 adults dealing with substantial financial obligations.
The impact is disproportionately felt by women, Black Americans, and individuals residing in rural areas and the Southern region. Alarmingly, one in three Black Americans have overdue medical bills, along with nearly half of American women and almost half of adults residing in the South.
According to the Kaiser Family Foundation, about 75 percent of US adults worry about affording unexpected medical bills. Alarmingly, one in four people, including one in five adults with health insurance, skip medical treatment due to cost concerns.
Canceling medical debt is overwhelmingly supported by the American public, with 84 percent of Republicans in favor of it. When polled, two-thirds of Americans expressed a desire to see medical debt forgiven, highlighting its widespread appeal across party lines.
“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 said in a statement. “No one in America should face financial ruin because of the outrageous cost of an unexpected medical emergency or a hospital stay. The time has come to cancel all medical debt and guarantee health care to all as a human right, not a privilege.”
The Medical Debt Cancellation Act proposes several key measures. It seeks to amend the Fair Debt Collection Practices Act by outlawing the collection of medical debt incurred before the bill's enactment and granting patients the right to take legal action. Additionally, it aims to amend the Fair Consumer Credit Reporting Act to remove medical debt from credit reports, preventing credit reporting agencies from including information related to medical expenses.
The Act also includes provisions to establish a grant program within the Health Resources and Services Administration, with a focus on eliminating medical debt for low-resource providers and underserved populations. Furthermore, it suggests amendments to the Public Health Service Act to update billing and debt collection requirements, thereby reducing the likelihood of future medical debt accumulation.
“Our current health care system is bankrupting Americans. I’ve heard heartbreaking stories from constituents who have skipped doctor’s appointments due to cost, who have lost loved ones because they couldn’t afford their medication, and who aren’t able to buy a house or get a job because of crippling medical debt,” said Khanna. “I am so proud to join Senator Sanders to cancel medical debt, wipe it from credit reports and reform our system going forward. This bill would transform the lives of millions of Americans and I couldn’t ask for a better partner in the fight.”
Congressman Khanna represents the 17th District of California, which covers communities in Silicon Valley.
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