What is the Medical Debt Relief Act?

Written By Melissa Cook
Jan 17, 2023
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It’s no secret that healthcare costs in the U.S. have become staggeringly high over the last decade, making it difficult for the average person to afford and pay off medical debt. According to a report published by the Kaiser Family Foundation in 2021, approximately 100 million Americans have some form of medical debt. 

Medical debt in the U.S. at a glance


Medical debt has long been a significant financial burden for many Americans, and it’s especially challenging for those who may already be struggling financially. When individuals or families face high medical bills, they are forced to choose between paying for necessary medical care or paying for other basic necessities such as food, housing, and utilities. This cycle of financial distress can force people to rely on credit or other borrowing methods to pay their medical bills, resulting in even more debt.

The COVID-19 pandemic has also contributed to the increase in medical debt. Many people have lost their jobs or had their hours reduced due to the pandemic, making it difficult for them to afford medical care. Additionally, the pandemic has led to increased demand for medical services and supplies, further driving up healthcare costs. In response to the high levels of medical debt that many individuals and families in the United States are facing, the Medical Debt Relief Act was created in 2021.


What is the Medical Debt Relief Act?


The Medical Debt Relief Act is a piece of legislation aiming to provide relief to individuals and families struggling with medical debt. The Act seeks to relieve these individuals by forgiving their medical debts and helping them get back on track. There are many different provisions in the Act, including conditions that allow for the forgiveness of medical debt for individuals who meet specific criteria and assist those struggling to pay their medical bills.


What is the status of the Medical Debt Relief Act?


The Medical Debt Relief Act has yet to be signed into law. The bill will first need to be passed by the House committee, where it will then move to the Senate to be passed. After that, the House and Senate will vote to make the bill a law.


Key Takeaways

  • The Medical Debt Relief Act is a bill that aims to provide financial relief to individuals and families struggling with medical debt.
  • The Medical Debt Relief Act is still a bill and has yet to be signed into law.
  • The Medical Debt Relief Act comes with provisions for people who meet certain criteria.


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