Bohnak, Frisbie and Schmalz introduce solution to tackle medical debt crisis

State Reps. Karl Bohnak, Steve Frisbie and Kathy Schmaltz today introduced a comprehensive plan to help Michigan families struggling under the growing weight of medical debt, ensuring greater transparency, fairness and protection for patients across the state.

House Bills 6071-6073 would establish new standards for hospital financial assistance, strengthen oversight and accountability, and shield patients from long-term financial harm tied to medical bills.

“Too many Michigan families are one unexpected illness away from financial hardship,” said Schmaltz, R-Jackson. “Our plan ensures patients have access to clear, consistent financial assistance and aren’t left navigating a confusing system during some of the most difficult moments of their lives.”

The proposal would require all hospitals in Michigan to maintain robust financial assistance programs to help patients who cannot afford care. These programs would be based on income and financial need, ensuring support reaches those who need it most. Hospitals would also be required to clearly communicate available assistance options to patients before bills are sent to collections, improving transparency and access to relief.

Frisbie’s portion of the plan updates current law to ensure hospital leadership is directly responsible for establishing and maintaining these assistance programs.

“Accountability matters,” said Frisbie, R-Battle Creek. “Hospitals already have the ability to help patients in need, but this plan makes that responsibility clear and consistent statewide so families aren’t left behind simply because of where they receive care.”

In addition to expanding access to financial assistance, the legislation would provide strong consumer protections by prohibiting medical debt from being reported to credit agencies. This measure, spearheaded by Bohnak, would prevent long-term damage to a patient’s financial future due to unexpected health care costs.

“A medical emergency should not ruin someone’s credit score or limit their ability to buy a home, secure a loan or provide for their family,” Bohnak said. “Our plan puts common-sense protections in place so people can focus on getting healthy, not worrying about lasting financial consequences.”

The legislation also enhances oversight by requiring hospitals to report data on their financial assistance programs to the state, ensuring transparency and public accountability. Any penalties collected from violations would be directed toward efforts to further relieve medical debt for Michigan residents.

House Bills 6071-6073 were referred to the House Health Policy Committee for consideration.

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