25-03-2025
Vermont Senate backs medical debt-relief bill
The Vermont Senate on Tuesday unanimously approved a bill that would wipe out $100 million in medical debt for Vermonters.
Senate Bill 27 would also prevent hospitals from reporting unpaid medical bills to credit-reporting agencies, as well as remove negative marks on the debtor's credit report.
State Treasurer Mike Pieciak, who announced the plan with lawmakers in January, said the measure would 'provide life-changing relief to tens of thousands of Vermonters' without raising taxes or fees.
Pieciak said the state would make a one-time investment of $1 million using funds previously appropriated to the Treasurer's Office and purchase medical debt from providers 'at pennies on the dollar.'
In January, Piecek estimated that 62,000 Vermonters — more than 1 in 10 adults — hold medical debt.
The Bill's sponsors — Sen. Ginny Lyons and Rep. Alyssa Black — say people with unpaid medical debt often put off seeking care, which can put them out of work and lead to more costly treatments later.
The Vermont Department of Health's 2021 Vermont Household Health Insurance Survey found that the fear of medical debt impacted 85,000 Vermonters' health care decisions.
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