OLYMPIA, Wash. --– Washington residents facing financial barriers because of medical debt stand to benefit if two bills passed by the legislature this week are signed into law by Gov. Bob Ferguson.
Leading patient organizations, including the American Cancer Society Cancer Action Network (ACS CAN) and The Leukemia & Lymphoma Society (LLS), applaud Washington lawmakers for passing protections for patients from the harmful effects of medical debt and urge Gov. Ferguson to sign them into law.
Senate Bill 5480 prohibits certain health care facilities and providers from reporting patients’ medical debt to consumer reporting agencies, meaning that debt incurred from medical care can no longer be used against residents as they apply for housing or a loan. Sen. Marcus Riccelli of Spokane sponsored the legislation.
A recent national poll led by ACS CAN, LLS and the nonprofit Undue Medical Debt, found that nearly half of adults nationwide have faced medical debt. Among them, nearly half said their debt had left them feeling “trapped.” Some patients reported delaying treatment for financial purposes, potentially reducing their overall survival chances.
The impact of medical debt is particularly acute on cancer patients. A recent ACS CAN survey of cancer patients and survivors found roughly half (51%) of respondents have incurred cancer-related medical debt, the majority of whom (53%) report having their debt go into collections, and 46% of whom say the debt has negatively impacted their credit.
“Cancer treatments can strain patients and their families’ finances well beyond what can be considered typical and that often means staggering medical bills,” ACS CAN Washington Government Relations Director Audrey Miller Garcia said. “This bill does not erase those obligations. These people want to pay their bills. It does stop those obligations from impacting the rest of the patients’ life.”
Thursday, the Washington Legislature also passed legislation updating garnishment exemptions for those experiencing financial difficulties when Senate Bill 5651 received final approval, making permanent debt collection practice reforms put in place during COVID-19. The bill restricts what and how much can be taken to collect debt, allowing those individuals to maintain possession of certain financial property and funds which could reduce the impact of medical debt on cancer patients and their families. It also awaits a signature from Gov. Ferguson.