Latest news with #S.27
Yahoo
15-05-2025
- Health
- Yahoo
Vermont passes law to exclude medical debt from credit reports
MONTPELIER, Vt. (ABC22/FOX44) – Governor Phil Scott signed a bill Thursday passed by the Vermont legislature that will eliminate up to $100 million in medical debt, but not without voicing his concerns. Senate backs bill to pay some Vermonters' medical debt Senate Bill 27 (S. 27) follows in the footsteps of states like Rhode Island, which passed its own medical debt relief program in October of last year. It eliminates some medical debt for low- and medium-income Vermonters by purchasing it 'at fair market value', and forbids credit agencies from including medical debt on their reports. Read the full text of the bill hereDownload Though the Governor signed the bill, he wrote in a letter to the General Assembly that care needs to be taken for the program to be effective in the future. 'With a looming healthcare crisis and our growing crisis of affordability in Vermont,' wrote Governor Scott, 'we should anticipate this debt financing program to grow which raises significant concerns about future appropriations and where the funding will come from. 'Finally, now that we have created this million-dollar program, we may be disincentivizing repayment because of a misperception that 'the State' will eventually pay for it.' The bill was proposed in January and endorsed by State Treasurer Mike Pieciak. It was passed unanimously by the Senate in March. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Newsweek
21-04-2025
- Health
- Newsweek
Medical Debt to Be Forgiven for Thousands Under New Proposal: What to Know
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A Vermont bill that would eliminate tens of millions of dollars in medical debt for people in Vermont is a step closer to becoming law. Why It Matters According to the Vermont State Treasurer, more than 1 in 10 people in the Green Mountain State hold medical debt. Nationwide, approximately 14 million people owe more than $1,000 in medical debt, and about 3 million people owe medical debt of over $10,000, according to KFF Health. What To Know The Vermont House of Representatives approved a measure on Friday that "allocates $1 million to contract with a nonprofit to purchase and forgive certain medical debts and prohibit reporting medical debt to credit agencies." The bill has already passed the state Senate. The bill also enhances consumer protections by aiming to ensure fair practices in medical debt collection and by increasing oversight of how medical debt is reported and utilized. Vermont Treasurer Mike Pieciak said the proposal will eliminate some $100 million of medical debt for more than 60,000 moderate- and low-income people in Vermont. Such debts will also be prohibited from showing on Vermonters' credit reports, he said. The proposal was first made in January, with Peiciak spearheading the effort alongside two Democrats: Senator Ginny Lyons and Representative Alyssa Black. Stock image of a stethoscope laid over U.S. currency. Stock image of a stethoscope laid over U.S. currency. GETTY What People Are Saying Vermont Speaker of the House Jill Krowinski: "Vermonters should not face financial peril because they sought needed medical treatment and ended up falling into medical debt. With the passage of S.27, we are taking a powerful step to relieve that burden, protecting families from unfair credit penalties and showing that compassion and fiscal responsibility can go hand in hand. This bill is about dignity, economic fairness, and giving Vermonters the opportunity for a fresh start." Vermont Treasurer Mike Pieciak said in a press release: "Vermont has some of the highest health care costs in the country, putting many Vermonters at risk of bankruptcy from a medical emergency through no fault of their own. Our proposal will eliminate medical debt and provide life-changing relief to tens of thousands of Vermonters." Representative Alyssa Black, chair of the Vermont House Health Care Committee, said in January: "Medical debt doesn't reflect someone's financial responsibility. It's a reflection of the gaps in our health care system. By removing it from credit reports, we're giving people a chance to rebuild their lives without medical debt holding them back." What Happens Next A third reading of the bill will take place on Tuesday, before it heads to the Senate for consideration of minor amendments. Pieciak said he believes that the "Senate will concur with those amendments pretty quickly, and then the bill will go to the governor for his consideration."
