With millions of Americans kicked off their health insurance in the middle of a raging pandemic,
"Millions of Americans have lost their jobs and health insurance during this public health crisis and the Trump administration worked to sabotage our health system instead of working to provide support for those struggling. More Americans are uninsured today than when Trump took office, with many facing medical debt and being forced into bankruptcy," said
"Our employment-based health insurance system is ill-suited for a pandemic," said
"Ohioans are already struggling amidst a once-in-a-generation pandemic. The last thing people should have to worry about is having to file for bankruptcy because of an unforeseen medical expense," said
"This public health crisis is pushing families to the brink, especially those with hospital bills piling up,"
Unlike other debts, medical debt is involuntary, unexpected, and can grow at a rapid rate. The current bankruptcy system does not distinguish between those bankrupted by medical crises and those who have experienced other financial difficulties.
The Medical Bankruptcy Fairness Act would create a more accommodating bankruptcy process for Americans forced into bankruptcy because of medical debt or because they lost their job during the COVID-19 pandemic. Specifically, the bill would:
* Waive procedural hurdles like credit counseling that make little sense for those pushed into bankruptcy due to medical debt;
* Permit the discharge of student loans, which currently cannot be erased in bankruptcy for most debtors; and
* Provide families a greater chance of keeping their homes in states that have weak debtor protections by allowing the retention of at least
According to bankruptcy experts, medical debt has been a leading cause of personal bankruptcy filings in